2.4 Parent-Entity Debt

ASC 805-50-30-12 indicates that an acquiree should recognize in its separate financial statements an acquisition-related liability incurred by the acquirer only if the liability represents an obligation of the acquiree in accordance with other U.S. GAAP. Therefore, in preparing carve-out financial statements, entities should attribute parent-entity debt to the carve-out financial statements only if the parent-entity debt represents an obligation of the carve-out entity in accordance with other U.S. GAAP. For more information, see Section 2.3.2.5 of Deloitte’s Roadmap Issuer’s Accounting for Debt.