Technical Accounting

Maximize the value for Technical Accounting

The Kranz Technical Accounting team offers a deep array of services. We roll up our sleeves and work with companies to assist with complex technical accounting matters, including the implementation of new accounting standards and with meeting the accounting and reporting requirements resulting from M&A, an IPO, or an annual audit. Our service professionals have Big 4 public accounting and industry experience with expertise across various industries in the public and private sectors.

Our team of experts can help you with:

  • Revenue Recognition
  • Accounting for Equity and Debt Financing Transactions
  • Share-Based Awards/Equity Matters
  • Audit Preparation and Support
  • M&A Transactions
  • IPO Preparation
  • Financial Statement Preparation

Technical Accounting services we deliver

Revenue Recognition

  • Assist management in the implementation or ongoing application of ASC 606 – Revenue from Contracts with Customers, and related policy documentation
  • Evaluate accounting treatment for unique revenue arrangements
  • Assist management to establish ongoing revenue reporting processes

Share-Based Awards/Equity Matters

  • Draft technical position memos on matters such as modifications or settlement of awards, repricing events, non-employee awards and awards with performance and/or market conditions
  • Perform option expense calculations and prepare related journal entries and disclosures
  • Assist management in identifying and addressing potential cheap stock matters
  • For private companies, assist with review of 409A valuation reports

M&A Transactions

  • Prepare technical position paper on purchase accounting and ensure appropriate accounting therein, including working with the Company’s third party valuation specialists
  • Prepare pro-forma financial statements, if needed
  • Assist management in conforming historical financial statements to fully comply with GAAP and SEC Reporting Requirements, as required
  • Develop templates for ongoing Acquirer/Parent and/or Lender reporting
  • Prepare Rule 3-05 financial statements if being acquired by an SEC registrant or carve-out financial statements
  • Provide transitional, operational, and technical accounting resources

Financial Statement Preparation

  • Preparation of a complete set of financial statements and footnote disclosures for private companies
  • Preparation of financial statements in accordance with SEC reporting requirements

Other

  • Lease accounting, including the implementation of ASC 842, the new leasing standard
  • Complex consolidation, including evaluation of variable interest entities
  • Foreign exchange
  • Derivatives and hedge accounting
  • Impairment

Accounting for Equity and Debt Financing Transactions

  • Evaluate debt, convertible debt, warrants, preferred stock and common stock for proper accounting, including identification and accounting for embedded derivatives
  • Evaluate debt refinancing events under debt modification/extinguishment rules 
  • Prepare technical position memos on the classification of preferred stock
  • Evaluate accounting for noncontrolling interests
  • Determine appropriate accounting for complex equity restructurings

Audit Support

  • Provide leadership in the overall management of the audit
  • Assist with audit preparation activities, including identifying areas with historical divergence from GAAP and providing guidance on resolution therein
  • Prepare analysis and documentation in support of key accounting conclusions
  • Assist with preparation of technical accounting memos, as needed
  • Interface directly with external auditors for timely resolution of accounting and audit issues, as presented

IPO Preparation

  • Assist with management of the IPO project – monitor progress to key date and deadlines
  • Work with external auditors, valuation specialists, attorneys, and others as needed to resolve accounting, auditing, or reporting matters as they arise
  • Prepare draft financial statements with footnotes including ensuring all new and applicable public company reporting and disclosure requirements are compiled
  • Assist in drafting sections of the S-1 including Dilution, Capitalization, MD&A, Summary Financial Information, Selected Financial Data, Executive Compensation as well as ensuring consistency of financial data through the S-1 document. We also perform the necessary updates to the S-1 document once the offering price is set
  • Participate in drafting sessions, as needed
  • Assist in the “quarterization” of historical financial information, if needed
  • Prepare EPS calculations and segment disclosures
  • Assist in drafting responses to SEC Comments, as needed 
  • Post-IPO support (assistance with 10-K, 10-Q filing requirements)
  • Advise on SOX requirements and related management certifications

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