Roadmap
Carve-Out Transactions
(August 2022)
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This Roadmap discusses
key factors for entities to consider as they prepare their carve-out
financial statements. “Carve-out financial statements” is a general
term used to describe financial statements derived from the
financial statements of a larger parent entity. Carve-out
transactions might occur when a parent entity wishes to pursue a
sale, spin-off, initial public offering, or special-purpose
acquisition company transaction involving a portion of the parent
entity. Carve-out financial statements are necessary to complete a
carve-out transaction and reflect the portion of a parent entity’s
balances and activities that are the subject of the transaction.
Certain SEC staff guidance addresses some elements of carve-out
financial statements (e.g., when the statements will be included in
an SEC filing), and parent entities often refer to the SEC staff’s
guidance on preparing financial statements for nonpublic carve-out
entities. However, there is no single set of comprehensive guidance
on preparing carve-out financial statements.
Also available is the latest
edition of On the
Radar, a high-level summary of emerging
issues and trends related to the accounting and
financial reporting topics addressed in the
Roadmap.
Be sure to check out other titles in Deloitte’s Roadmap series, our comprehensive,
easy-to-understand collection of accounting guides on selected
topics of broad interest to the financial reporting community.