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Acquisition Accounting Periods - mid-month close?

  • 1.  Acquisition Accounting Periods - mid-month close?

    SILVER CONTRIBUTOR
    Posted Mar 25, 2020 10:43 AM
    In the case of a mid-month acquisition, should we create two separate accounting periods for the pre-acquisition month and post-acquisition month? And how about a new fiscal year that starts in the middle of the month?  The company is an LLC (flow-through for tax purposes).  The current ownership will have tax liability for the first 4 1/2 months of activity, so there will be a close for that activity with a K-1 provided to current owners.  The new ownership will be taking over mid-month, so I assume their fiscal year will be something like 4/15 through 12/31.  Has anyone done something similar in NAV?  Will it break everything if we create two accounting periods for the same month and two fiscal years in the same year?  Thanks for your help!






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    Angela Dunnahoe
    Marucci Sports
    Baton Rouge LA
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    Academy - Online Interactive Learning from Experts


  • 2.  RE: Acquisition Accounting Periods - mid-month close?

    TOP CONTRIBUTOR
    Posted Mar 26, 2020 02:09 PM
    Hi Angela,
    You can create a new period with the Start Date of 04/15. Mark the period that starts 04/15 as 'New Fiscal Year'.  That will allow you to close the period that starts 04/01 mid month.  Should not be an issue as many people have had this requirement in the past.

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    Crystal Tollison
    Consultant
    ArcherPoint Inc.
    Lawrenceville GA
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    Academy - Online Interactive Learning from Experts


  • 3.  RE: Acquisition Accounting Periods - mid-month close?

    SILVER CONTRIBUTOR
    Posted Mar 26, 2020 04:37 PM
    Thank you, Crystal!  That's what I was hoping to hear.  Glad we're not going to break anything.

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    Angela Dunnahoe
    Marucci Sports
    Baton Rouge LA
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    Academy - Online Interactive Learning from Experts


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