Is it necessary/appropriate to create a sub-period...
# accountingr
Robert Diaz
03/12/2021, 1:12 PMIs it necessary/appropriate to create a sub-period in order to delineate financial statements before and after an acquisition?
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KevinJ of Kansas
03/12/2021, 1:24 PMI've seen it done before. It has some benefits and drawbacks. Mostly it's hard to get exactly right, and I'd be inclined to set up a new subsidiary instead if it was an option
KevinJ of Kansas
03/12/2021, 1:24 PMOr a custom segment
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Robert Diaz
03/12/2021, 1:30 PMThe idea of a "dummy" subsidiary crossed my mind, too. But wouldn't it be messier? I don't know how to execute the custom segment approach either.
Robert Diaz
03/12/2021, 1:31 PMBesides, I'm no Controller but will having an entity on the books forever be hard to justify?
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KevinJ of Kansas
03/12/2021, 1:59 PMIt'd be a "migration" - you'd close off one entity and create a new one with appropriate starting balances, open invoices/entities.
KevinJ of Kansas
03/12/2021, 2:00 PMSimilar in nature to an implementation - just no customization/config necessary as it should use all existing customization.
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Robert Diaz
03/12/2021, 4:14 PMdoable. but it will also mean i will have to reassign the primary subs to my entities. i will also lose a consolidated view of the business. unless you mean we migrate it to its parent?
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KevinJ of Kansas
03/12/2021, 5:15 PMLike I said, pros and cons to any way you handle it. Mainly about fit for the business and the goals
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Sciuridae54696d
03/12/2021, 5:35 PMhey, just chiming in, is this a discussion whether doing subsidiary heirarchy modification is better than creating a new subsidiary kinda discussion? In an acquisition?
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Robert Diaz
03/12/2021, 5:44 PMyes sir
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KevinJ of Kansas
03/12/2021, 6:15 PMThe issue is if you already have eliminations and currency revals or any other complexity on an Inter company level
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