Guidance on Complex Accounting Matters

Technical accounting involves analyzing complex transactions and determining the appropriate accounting treatment under U.S. GAAP and other applicable reporting requirements. Companies often need technical accounting support for acquisitions, revenue recognition, leases, debt and equity transactions, stock-based compensation, consolidations, new accounting standards, and other unusual or complex transactions. LMAM Consulting helps companies evaluate these issues, document their conclusions, and prepare for auditor review.

A technical accounting memo documents a company's analysis of a complex accounting issue, the applicable accounting guidance, key facts and assumptions, and the rationale supporting management's accounting conclusion. Auditors may request this documentation when reviewing significant or judgmental transactions. LMAM Consulting prepares audit-ready technical accounting memorandums designed to clearly support management's conclusions and facilitate an efficient audit review.

Yes. LMAM Consulting helps companies evaluate revenue arrangements under ASC 606, Revenue from Contracts with Customers. Support may include identifying performance obligations, determining transaction price, allocating consideration, evaluating contract modifications and variable consideration, determining the appropriate timing of revenue recognition, preparing technical accounting documentation, and supporting discussions with external auditors.

Yes. LMAM Consulting assists companies with accounting for acquisitions and business combinations under ASC 805. This can include evaluating whether a transaction qualifies as a business combination, purchase accounting, consideration transferred, contingent consideration, identifiable assets and liabilities, goodwill, measurement-period adjustments, financial statement disclosures, and related technical accounting documentation.

Ideally, a technical accounting advisor should be involved before a complex transaction is completed or before the audit begins. Early involvement allows potential accounting and reporting issues to be identified before they create delays, unexpected audit questions, or financial statement adjustments. Companies commonly engage technical accounting advisors before acquisitions, financing transactions, new contracts, restructurings, IPO preparation, implementation of new accounting standards, or other significant business events.