Shearman & Sterling LLP
Issue link: https://digital.shearman.com/i/1494417
Financial Statement Requirements for Acquisitions (cont.) Carve-out Financials Financial Statements – The Basic Requirements 34 • When a company acquires selected parts of an entity in a significant business acquisition, then "carve-out" financials may be required • If company is acquiring selected parts of the business which do not represent substantially all of the selling entity audited financial statements, should only represent the selected parts of the entity acquired excluding the operations retained by the seller • Abbreviated financial statements of carved-out business may be provided where previous owner entity did not maintain separate financial statements of the carved-out business;