Accounting and Reporting Support for Mergers and Acquisitions

In today's fast-changing world, for companies racing to stay one step ahead of the competition, the one constant item on the business agenda is mergers and acquisitions. Throughout every acquisition, companies face increasingly complex International Financial Reporting Standards ("IFRS") and US Generally Accepted Accounting Principles ("US GAAP") requirements. Once the sale and purchase agreement ("SPA") has been signed, it may be too late to understand and measure the effects of the transaction, and of integrating the two companies afterwards, on the financial statements, key financial and operating indicators, reporting processes and systems. For this reason, SFAI advises companies throughout the process with a team specialised in mergers and acquisitions.

During an acquisition, we can help you with the following matters.

• Compiling and reviewing financial statements in accordance with IFRS, US GAAP, Turkish Financial Reporting Standards ("TFRS") or any other required reporting framework

• Interpreting and analysing the effects on financial information of complex standards such as IFRS 9 "Financial Instruments", IFRS 15 "Revenue from Contracts with Customers", IFRS 16 "Leases" and IFRIC 12 "Service Concession Arrangements", and incorporating them into reporting

• Analysing the financial model prepared during the sale process

• Preparing pro forma financial information

• Compiling reformatted "carve-out" financial information

• After the SPA is signed, preparing the opening balance sheet as of the acquisition date under the required reporting framework

• Identifying differences in accounting policies and practices between the acquirer and the acquiree, and adapting the acquirer's accounting policies and practices to the acquiree's financial reporting

• Supporting the alignment of the acquiree's financial reporting systems and processes with those of the acquirer