WarrantyClaimExpert

Accounting Standards Opinion

Opinion on whether financial statements complied with IFRS or UK GAAP and the agreed accounting basis in the SPA.

Accounting standards opinions are central to accounts warranty breach claims and completion accounts disputes. The expert determines which standards governed the financial statements and whether treatment complied.

Common disputed areas include IAS 37 provisions, IFRS 15 revenue recognition, IFRS 16 leases, deferred revenue, and net debt definitions. The SPA agreed accounting basis may impose additional requirements beyond general GAAP.

The expert documents the correct accounting treatment for each disputed item, compares it to the treatment adopted, and quantifies the financial impact on the reported position.

Methodology

  • Identify applicable accounting standards
  • Review treatment of disputed items
  • Assess compliance with SPA accounting basis
  • Document correct accounting treatment

Frequently Asked Questions

What accounting standards apply in M&A warranty claims?
Typically IFRS or UK GAAP (FRS 102) as specified in the SPA and the target company's stated accounting policies. The agreed accounting basis in the SPA is the primary test, not abstract GAAP compliance.
How does the expert establish an accounts warranty breach?
The expert reviews financial statements against applicable standards and SPA policies, identifies the correct treatment for each alleged misstatement, compares it to the treatment adopted, and quantifies the impact.
Are accounting standards opinions used in expert determination?
Yes. Completion accounts expert determination frequently turns on whether items were prepared consistently with the agreed accounting basis. Written submissions address the correct accounting treatment for each disputed line item.
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