CFO Edge Logo
  Home > Resources > Divestiture Accounting Article  
     
 

The Complexity & Importance of Accounting for Divestitures

 
  Mark S. Becker, Partner, CFO Edge, LLC  
   
  Open as PDF Open the entire article as a downloadable PDF (No form completion is requested.)  
     
  Article Summary  
The complexity and importance of accounting for divestitures cannot be overstated given the many challenges involved along with the focus of the SEC.

Corporate divestitures have characteristics that differentiate them from other merger and acquisition (M&A) transactions.

For example, prior to sale execution, the sold entity's infrastructure must be separated from the seller as the sale price announcement can cause potential instability.

Accounting for divestitures must address four specific challenges, and failure to do so can generate three potential negative impacts.

Required for successful divestiture accounting is a structured approach that includes planning, preparation and disciplined execution.

Los Angeles and Southern California executives contemplating a transaction that includes a divestiture can benefit from talking with a CFO services professional who is well-versed in divestiture accounting technical expertise, potential pitfalls, and divestiture documents.

  Open as PDF Open the entire article as a downloadable PDF (No form completion is requested.)  
     
Subscribe to CFO Inside Edge

Our monthly newsletter delivers first notice of new white papers and articles plus remarks on performance challenges and solutions. View past issues and subscribe.

 
 
 
CFO or Controller: What's Right for Your Business?
White Paper
CFO or
Controller:
What's Right
for Your
Business?
Outsourced CFO Services
White Paper
Outsourced
CFO Services
Performance Measurement
White Paper
Performance Measurement
Strategic Planning & Forecasting
Brief
Year-End Strategic Planning & Forecasting
Planning a Business Exit White Paper
White Paper
Planning a
Business Exit
 
CFO Edge Blog CFO Edge on Twitter CFO Edge on LinkedIn
 
Intuit Certifications