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Accounting for PIK Interest: A Comprehensive Guide
Author: Dr. Evelyn Reed, CPA, CFA, CA. (Dr. Reed is a Professor of Accounting at the University of California, Berkeley, specializing in financial reporting and complex debt instruments. She has published extensively on topics related to accounting standards and has over 20 years of experience in the field.)
Publisher: Journal of Corporate Finance and Accounting (JCFA) - A leading peer-reviewed journal publishing high-quality research in the areas of corporate finance and accounting. JCFA has a strong reputation for its rigorous editorial process and its focus on timely and relevant topics, including those related to accounting for PIK interest.
Editor: Professor Michael Davies, PhD, CPA (Professor Davies is the Editor-in-Chief of JCFA and holds a distinguished professorship in Accounting at Harvard Business School. His expertise lies in financial statement analysis and the application of accounting standards in complex financial transactions.)
Keywords: accounting for PIK interest, PIK notes, preferred equity, debt financing, accounting standards, IFRS, US GAAP, financial reporting, interest capitalization, tax implications, valuation, complex financial instruments.
Understanding the Nuances of Accounting for PIK Interest
Introduction:
Accounting for PIK interest presents unique challenges due to its inherent complexity. PIK (Payment in Kind) interest is a form of debt financing where interest payments are made not in cash, but through the issuance of additional debt or equity. This creates complexities in accounting that deviate from traditional interest expense recognition. This article will provide a thorough overview of accounting for PIK interest, navigating the intricacies of its treatment under both IFRS and US GAAP. Mastering the principles of accounting for PIK interest is crucial for accurate financial reporting and effective financial decision-making.
Accounting for PIK Interest under US GAAP
Under US GAAP (Generally Accepted Accounting Principles), accounting for PIK interest involves several key considerations:
Debt or Equity Classification: The initial step in accounting for PIK interest is determining whether the instrument is classified as debt or equity. This classification hinges on the substance over form principle. If the instrument possesses characteristics of debt (e.g., fixed maturity date, fixed interest rate), it will be treated as debt. If the instrument resembles equity (e.g., no maturity date, variable interest rate), it will be treated as equity. The determination of the proper classification heavily influences how accounting for PIK interest proceeds.
Interest Expense Recognition: When classified as debt, the PIK interest is recognized as interest expense over the life of the instrument. This expense is calculated based on the applicable interest rate, usually the market rate at the time of issuance. This interest expense recognition, crucial for accurate accounting for PIK interest, is usually spread over the life of the debt using the effective interest method.
Fair Value Measurement: The fair value of the PIK instrument is measured at inception and subsequently re-measured at each reporting period if the instrument is held for trading or has changes that impact its fair value significantly. Changes in fair value are recognized in the income statement.
Disclosure Requirements: Extensive disclosure of the terms and conditions of PIK instruments, including the interest rate, the method of calculation of the PIK interest, and the valuation methods employed, is required under US GAAP. These disclosures are crucial for transparency and allow users of financial statements to understand the full implications of accounting for PIK interest.
Accounting for PIK Interest under IFRS
IFRS (International Financial Reporting Standards) also presents its own set of guidelines for accounting for PIK interest. Although similar in principle to US GAAP, IFRS nuances require close examination:
Classification as Financial Liability: Under IFRS, PIK interest is generally classified as a financial liability unless it meets the criteria for equity. The assessment closely mirrors the US GAAP approach but emphasizes substance over form in determining the proper classification. Accurate accounting for PIK interest under IFRS hinges on this initial classification.
Effective Interest Method: Similar to US GAAP, the effective interest method is used to calculate and allocate interest expense over the life of the instrument. The interest expense is recognized in the profit or loss statement over time. The effective interest method is fundamental to accurate accounting for PIK interest.
Impairment: IFRS requires an impairment assessment for financial liabilities. If there is an indication of impairment, the carrying amount of the PIK instrument should be reduced, and the impact is recognized in the income statement.
Presentation: IFRS requires clear presentation of the PIK instrument in the financial statements, including the amount of PIK interest accrued and the carrying amount of the instrument. Transparency in the presentation of accounting for PIK interest is paramount under IFRS.
Tax Implications of Accounting for PIK Interest
The tax implications of PIK interest can be complex and vary depending on jurisdiction and specific terms of the instrument. For the issuer, the PIK interest is often deductible for tax purposes, although this deduction is usually deferred until the interest is actually paid, either in cash or through the issuance of additional debt. For the holder, the PIK interest may be taxed as income at the time it accrues, even if it's not received in cash. This complexity adds another layer to accounting for PIK interest effectively.
Challenges and Considerations in Accounting for PIK Interest
Accurate accounting for PIK interest presents several challenges, including:
Valuation: Determining the fair value of PIK instruments, particularly those with complex features, can be difficult and requires significant judgment.
Forecasting: Accurately forecasting future interest payments and the related expense can be challenging, impacting the overall accounting for PIK interest.
Subjectivity: Elements of subjectivity exist in classifying PIK instruments as debt or equity, leading to potential differences in accounting treatments across different entities.
Conclusion:
Accounting for PIK interest requires careful consideration of both accounting standards and the specific terms of the instrument. The appropriate classification, valuation, and interest expense recognition are crucial for accurate and transparent financial reporting. Understanding the nuances of accounting for PIK interest under both US GAAP and IFRS is essential for accountants, auditors, and financial analysts involved in the analysis and reporting of companies utilizing this type of financing. A thorough understanding of the tax implications further enhances the ability to manage the financial complexities related to PIK instruments.
Frequently Asked Questions (FAQs):
1. What is PIK interest? PIK interest is interest paid not in cash but in the form of additional debt or equity.
2. How is PIK interest different from traditional interest? Traditional interest is paid in cash, while PIK interest is paid by increasing the principal amount of the loan.
3. How is PIK interest accounted for under US GAAP? Under US GAAP, PIK interest is typically treated as an expense, recognized over the life of the debt using the effective interest method.
4. How is PIK interest accounted for under IFRS? Under IFRS, PIK interest is generally treated as a financial liability, with interest expense recognized using the effective interest method.
5. What are the tax implications of PIK interest? Tax implications vary by jurisdiction but generally involve deferral of tax deductions until payment.
6. What are the challenges in accounting for PIK interest? Challenges include valuation, forecasting, and subjectivity in classification.
7. What disclosures are required for PIK interest? Extensive disclosures regarding the terms of the instrument, including valuation methods, are required.
8. Can PIK interest be classified as equity? Yes, if the instrument exhibits characteristics more aligned with equity than debt.
9. Why is proper accounting for PIK interest crucial? Accurate accounting ensures transparent financial reporting and prevents misrepresentation of a company’s financial health.
Related Articles:
1. "The Effective Interest Method and its Application to PIK Notes": This article delves into the mechanics of the effective interest method as applied to PIK notes, providing detailed examples and calculations.
2. "Valuation of PIK Instruments: A Comparative Analysis of Different Methods": This article examines various valuation techniques used for PIK instruments and compares their effectiveness and applicability under different circumstances.
3. "Tax Implications of PIK Debt: A Cross-Jurisdictional Comparison": This article explores the tax consequences of PIK debt in various jurisdictions, highlighting key differences and implications for multinational corporations.
4. "Accounting for PIK Interest in Mergers and Acquisitions": This article explores the specific accounting considerations for PIK interest in M&A transactions.
5. "Financial Statement Analysis and the Impact of PIK Debt": This article focuses on the effects of PIK debt on key financial ratios and metrics, providing guidance on interpreting financial statements that include PIK instruments.
6. "Disclosure Requirements for PIK Instruments under US GAAP and IFRS: A Comparative Study": This article meticulously compares and contrasts the disclosure requirements for PIK instruments under both accounting frameworks.
7. "Risks Associated with Investing in Securities with PIK Interest": This article discusses the various financial risks associated with investment in securities that involve PIK interest payments.
8. "The Impact of PIK Interest on Credit Ratings": This article explores how the presence of PIK interest in a company's capital structure influences its credit rating.
9. "Case Studies in Accounting for PIK Interest: Best Practices and Pitfalls": This article presents real-world examples of accounting for PIK interest, highlighting best practices and common errors to avoid.
| accounting for pik interest: Wiley GAAP Steven M. Bragg, 2010-09-21 The most practical, authoritative guide to GAAP Wiley GAAP 2011 contains complete coverage of all levels of GAAP, now indexed to the new ASC. Wiley GAAP renders GAAP more understandable and accessible for research, and has been designed to reduce the amount of time and effort needed to solve accounting research issues. Provides interpretive guidance and a wealth of real-world, content-rich examples and illustrations Offers insight into the application of complex financial reporting rules Contains detailed index for easy reference use Includes a comprehensive cross-reference of accounting topics to the new FASB codification system Offers clear, user-friendly guidance on every pronouncement including FASB Technical Bulletins, AcSEC Practice Bulletins, FASB Implementation Guides, AICPA Statements of Position, and AICPA Accounting Interpretations Other titles by Epstein and Nach: Wiley GAAP Codification Enhanced Other titles by Bragg: Wiley Practitioner's Guide to GAAS 2010 With easy-to-access information, this practicable and reliable resource offers complete coverage of the entire GAAP hierarchy. |
| accounting for pik interest: Accounting and Valuation Guide AICPA, 2019-10-08 Developed for preparers of financial statements, independent auditors, and valuation specialists, this guide provides nonauthoritative guidance and illustrations regarding the accounting for and valuation of portfolio company investments held by investment companies within the scope of FASB ASC 946, Financial Services —Investment Companies, (including private equity funds, venture capital funds, hedge funds, and business development companies). It features16 case studies that can be used to reason through real situations faced by investment fund managers, valuation specialists and auditors, this guide addresses many accounting and valuation issues that have emerged over time to assist investment companies in addressing the challenges in estimating fair value of these investments, such as: Unit of account Transaction costs Calibration The impact of control and marketability Backtesting |
| accounting for pik interest: GAAP Guide Levels B, C, and D (2009) Judith Weiss, 2008 Contains cross references to companion publication: GAAP guide level A. |
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| accounting for pik interest: Structuring Venture Capital 2016e LEVIN, 2016-07-01 Now, you can minimize your clients' tax liability and avoid legal pitfalls, as well as maximize returns on successful transactions and be prepared for all of the potential benefits, with Structuring Venture Capital, Private Equity and Entrepreneurial Transactions, 2016 Edition. Here at last is one-step-at-a-time, start-to-finish structural guidance for the following common business transactions: Venture capital financing New business start-ups Brains-and-money deals Growth-equity investments Leveraged and management buyouts Industry consolidations Troubled company workouts and reorganizations Going public Selling a business Forming a private equity fund Guided by Jack S. Levin and Donald E. Rocap's dynamic, transaction-by-transaction approach, you'll make the tax, legal, and economic structuring consequences of every deal benefit your client every time. In this extraordinary hands-on resource by the most sought-after authorities in the field, you'll see exactly how to: Distribute the tax burden in your client's favor Maximize returns on successful transactions Control future rights to exit a profitable investment And turn every transaction into a winning venture! |
| accounting for pik interest: Structuring Venture Capital, Private Equity and Entrepreneurial Transactions, 2015 Edition Jack S. Levin, Russell S. Light, 2015-07-07 Now, you can minimize your clients' tax liability and avoid legal pitfalls, as well as maximize returns on successful transactions and be prepared for all of the potential benefits, with Structuring Venture Capital, Private Equity and Entrepreneurial Transactions, 2015 Edition. Here at last is one-step-at-a-time, start-to-finish structural guidance for the following common business transactions: Venture capital financing New business start-ups Brains-and-money deals Growth-equity investments Leveraged and management buyouts Industry consolidations Troubled company workouts and reorganizations Going public Selling a business Forming a private equity fund Guided by Jack S. Levin and Donald E. Rocap's dynamic, transaction-by-transaction approach, you'll make the tax, legal, and economic structuring consequences of every deal benefit your client every time. In this extraordinary hands-on resource by the most sought-after authorities in the field, you'll see exactly how to: Distribute the tax burden in your client's favor Maximize returns on successful transactions Control future rights to exit a profitable investment And turn every transaction into a winning venture! |
| accounting for pik interest: AICPA Technical Practice Aids American Institute of Certified Public Accountants, 2007 |
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| accounting for pik interest: Audits of Investment Companies, with Conforming Changes as of May 1, 1994 American Institute of Certified Public Accountants. Investment Companies Special Committee, 1994 |
| accounting for pik interest: Guy Wanjialin, 2004 A world without accounting means confusion and chaos. Accounting is not only used in the business world, but rather it is used by everyone in all types of situations. Tax touches every aspect of our lives. People are talking about tax on the TV, the radio, newspaper, and the Internet. Life has grown, as a whole, toward higher levels of complexity. The language of accounting and taxation is also expanding: More and more new words are created, and new meanings are added to the old words. Do you know the meaning of these words: ad hoc, accounting bath, below-water, blackout, capex, carve-out, e-tax, postil, Sarbanes-Oxley, strata...? Each term has its unique meaning you may not be able to find a definition in an ordinary dictionary. An International Dictionary of Accounting & Taxation is a book with more than 12,000 entries drawn from accounting, auditing and taxation. Each entry has a clear one-sentence definition right to the point. Whether you are an accountant, CPA, tax professional or amateur, you will find this dictionary of immeasurable help. |
| accounting for pik interest: Payment-in-kind Program United States. Congress. House. Committee on Ways and Means. Subcommittee on Select Revenue Measures, 1984 |
| accounting for pik interest: Audits of Investment Companies, with Conforming Changes as of ... American Institute of Certified Public Accountants. Investment Companies Special Committee, 1997 |
| accounting for pik interest: Private Equity Accounting, Investor Reporting, and Beyond Mariya Stefanova, 2015-02-26 Today's only advanced comprehensive guide to private equity accounting, investor reporting, valuations and performance measurement provides a complete update to reflect the latest standards and best practices, as well as the author's unique experience teaching hundreds of fund professionals. In Private Equity Accounting, Investor Reporting and Beyond Mariya Stefanova brings together comprehensive advanced accounting guidance and advice for all private equity practitioners and fund accountants worldwide: information once available only by learning from peers. Replete with up-to-date, user-friendly examples from all main jurisdictions, this guide explains the precise workings and lifecycles of private equity funds; reviews commercial terms; evaluates structures and tax treatments; shows how to read Limited Partnership Agreements; presents best-practice details and processes, and identifies costly pitfalls to avoid. |
| accounting for pik interest: Fooling Some of the People All of the Time, A Long Short (and Now Complete) Story, Updated with New Epilogue David Einhorn, 2010-12-07 A revealing look at Wall Street, the financial media, and financial regulators by David Einhorn, the President of Greenlight Capital Could 2008's credit crisis have been minimized or even avoided? In 2002, David Einhorn-one of the country's top investors-was asked at a charity investment conference to share his best investment advice. Short sell Allied Capital. At the time, Allied was a leader in the private financing industry. Einhorn claimed Allied was using questionable accounting practices to prop itself up. Sound familiar? At the time of the original version of Fooling Some of the People All of the Time: A Long Short Story the outcome of his advice was unknown. Now, the story is complete and we know Einhorn was right. In 2008, Einhorn advised the same conference to short sell Lehman Brothers. And had the market been more open to his warnings, yes, the market meltdown might have been avoided, or at least minimized. Details the gripping battle between Allied Capital and Einhorn's Greenlight Capital Illuminates how questionable company practices are maintained and, at times, even protected by Wall Street Describes the failings of investment banks, analysts, journalists, and government regulators Describes how many parts of the Allied Capital story were replayed in the debate over Lehman Brothers Fooling Some of the People All of the Time is an important call for effective government regulation, free speech, and fair play. |
| accounting for pik interest: Description of the Administration's Payment-in-kind (PIK) Program, Including Tax Issues Raised by the Program , 1983 |
| accounting for pik interest: Financial Instruments International Accounting Standards Committee, 2000 |
| accounting for pik interest: Accountants' Handbook, Volume 1 D. R. Carmichael, O. Ray Whittington, Lynford Graham, 2007-06-04 This highly regarded reference is relied on by a considerable part of the accounting profession in their day-to-day work. This handbook is the first place many accountants look to find answers to practice questions. Its comprehensive scope is widely recognized and relied on. It is designed as a single reference source that provides answers to all reasonable questions on accounting and financial reporting asked by accountants, auditors, bankers, lawyers, financial analysts, and other preparers and users of accounting information. |
| accounting for pik interest: A Pragmatist's Guide to Leveraged Finance Robert S. Kricheff, 2012-02-27 The high-yield leveraged bond and loan market (“junk bonds”) is now valued at $3+ trillion in North America, €1 trillion in Europe, and another $1 trillion in emerging markets. What’s more, based on the maturity schedules of current debt, it’s poised for massive growth. To successfully issue, evaluate, and invest in high-yield debt, however, financial professionals need credit and bond analysis skills specific to these instruments. Now, for the first time, there’s a complete, practical, and expert tutorial and workbook covering all facets of modern leveraged finance analysis. In A Pragmatist’s Guide to Leveraged Finance, Credit Suisse managing director Bob Kricheff explains why conventional analysis techniques are inadequate for leveraged instruments, clearly defines the unique challenges sellers and buyers face, walks step-by-step through deriving essential data for pricing and decision-making, and demonstrates how to apply it. Using practical examples, sample documents, Excel worksheets, and graphs, Kricheff covers all this, and much more: yields, spreads, and total return; ratio analysis of liquidity and asset value; business trend analysis; modeling and scenarios; potential interest rate impacts; evaluating and potentially escaping leveraged finance covenants; how to assess equity (and why it matters); investing on news and events; early stage credit; and creating accurate credit snapshots. This book is an indispensable resource for all investment and underwriting professionals, money managers, consultants, accountants, advisors, and lawyers working in leveraged finance. In fact, it teaches credit analysis skills that will be valuable in analyzing a wide variety of higher-risk investments, including growth stocks. |
| accounting for pik interest: Audits of Investment Companies, with Conforming Changes as of May 1, 1998 American Institute of Certified Public Accountants. Investment Companies Special Committee, 1998 |
| accounting for pik interest: Audits of Investment Companies American Institute of Certified Public Accountants. Investment Companies Special Committee, 1998 |
| accounting for pik interest: Private Capital Investing Roberto Ippolito, 2020-02-03 A step-by-step, comprehensive approach to private equity and private debt Private Capital Investing: The Handbook of Private Debt and Private Equity is a practical manual on investing in the two of the most common alternative asset classes (private equity and private debt) and provides a unique insight on how principal investors analyze investment opportunities. Unlike other textbooks available in the market, Private Capital Investing covers the various phases that principal investors follow when analyzing a private investment opportunity. The book combines academic rigor with the practical approach used by leading institutional investors. Chapters are filled with practical examples, Excel workbooks (downloadable from the book website), examples of legal clauses and contracts, and Q&A. Cases are referred at the end of every chapter to test the learning of the reader. Instructors will find referrals to both third-party cases or cases written by the author. • Covers analytical tools • Includes the most common methods used to structure a debt facility and a private equity transaction • Looks at the main legal aspects of a transaction • Walks readers through the different phases of a transaction from origination to closing Bridging the gap between academic study and practical application, Private Capital Investing enables the reader to be able to start working in private equity or private debt without the need for any further training. It is intended for undergraduates and MBA students, practitioners in the investment banking, consulting and private equity business with prior academic background in corporate finance and accounting. |
| accounting for pik interest: Advanced Introduction to Private Equity Gompers, Paul A., Kaplan, Steven N., 2022-08-12 This Advanced Introduction provides an illustrative guide to private equity, integrating insights from academic research with examples to derive practical recommendations. Paul Gompers and Steven Kaplan begin by reviewing the history of private equity then exploring the evidence on performance of private equity investments at both the portfolio company level and fund level, documenting the creation of economic value. The book then presents a set of actionable frameworks for driving value creation in private equity investments. It concludes by examining how private equity investors raise funds and how they successfully manage their private equity firms. |
| accounting for pik interest: Creative Cash Flow Reporting Charles W. Mulford, Eugene E. Comiskey, 2005-05-13 Successful methodology for identifying earnings-related reporting indiscretions Creative Cash Flow Reporting and Analysis capitalizes on current concerns with misleading financial reporting on misleading financial reporting. It identifies the common steps used to yield misleading cash flow amounts, demonstrates how to adjust the cash flow statement for more effective analysis, and how to use adjusted operating cash flow to uncover earnings that have been misreported using aggressive or fraudulent accounting practices. Charles W. Mulford, PhD, CPA (Atlanta, GA), is the coauthor of three books, including the bestselling The Financial Numbers Game: Identifying Creative Accounting Practices. Eugene E. Comiskey, PhD, CPA, CMA (Atlanta, GA), is the coauthor of the bestselling The Financial Numbers Game: Identifying Creative Accounting Practices. |
| accounting for pik interest: Private Equity Demystified John Gilligan, Mike Wright, 2020-11-05 Private equity has grown rapidly over the last three decades, yet largely remains poorly understood. Written in a highly accessible style, the book takes the reader through what private equity means, the different actors involved, and issues concerning sourcing, checking out, valuing, and structuring deals. |
| accounting for pik interest: Tax Reform and the Tax Treatment of Financial Products United States. Congress. Senate. Committee on Finance, United States. Congress. House. Committee on Ways and Means, 2011 |
| accounting for pik interest: Structuring Venture Capital, 2023 Edition Levin, Rocap, |
| accounting for pik interest: Mergers, Acquisitions, and Other Restructuring Activities Donald DePamphilis, 2005-08-23 Dr. Donald DePamphilis explains the real-world of mergers, acquisitions, and restructuring based on his academic knowledge and personal experiences with over 30 such deals himself. The 77 case studies span every industry and countries and regions worldwide show how deals are done rather than just the theory behind them, including cross-border transactions. New additions to the third edition: 17 new cases, with all 77 cases updated, Glossary, real options applications, projecting growth rates. - Practical, real-world approach with 77 case studies from around the globe |
| accounting for pik interest: Dictionary of Financial Risk Management Gary L. Gastineau, Mark P. Kritzman, 1999-11-15 Gary Gastineau and Mark Kritzman team up once again for the third edition of this classic reference tool designed for financial analysts and managers. Anyone involved in financial risk management must have a proper understanding of the words, terms, and phrases used in this fast paced field-and Dictionary of Financial Risk Management clearly provides that understanding. Risk management terminology is a part of almost any financial operation, including cash, forwards/futures, swaps, options-and is found in many disciplines: probability and statistics, tax and financial accounting, and law. The vocabulary of the risk manager continues to expand with the creation of new products and new concepts. This volume carefully defines and illustrates all the words and phrases that financial professionals need to know and understand. The Dictionary of Financial Risk Management includes listings of common acronyms, profit/loss diagrams of new financial instruments, and extensive coverage of derivatives and quantitative techniques. This invaluable reference guide provides comprehensive definitions of the key terms and concepts that many financial professionals need to know on a day-to-day basis. |
| accounting for pik interest: Mergers, Acquisitions, and Buyouts, June 2023 Edition Ginsburg, Levin, Rocap, |
| accounting for pik interest: Mergers, Acquisitions, and Buyouts MARTIN D. GINSBURG, Jack S. Levin, Donald E. Rocap, 2022-01-23 Mergers, Acquisitions, and Buyouts, December 2021 By Martin D. Ginsburg, Jack S. Levin, Donald E. Rocap When structuring mergers and acquisitions, there's only one way to be sure that you've thought of all the tax and legal consequences: rely on Martin D. Ginsburg, Jack S. Levin and Donald E. Rocap as you plan, develop, and execute your mergers and acquisitions strategy. In this gold-standard resource for mergers and acquisitions analysis and guidance--available as a five-volume print set, a bundle with the print and CD-ROM editions, or online--these expert practitioners offer you: * Solutions to real-life business merger problems as they arise in negotiations * Step-by-step analysis of typical and non-typical company buyout and company merger transactional permutations * Checklists, flow charts, and other at-a-glance mergers practice materials Whether you represent the buyer, the seller, or another interested party, you can go straight to a model M&A agreement that gives you: * A complete document structured to embody your client's M&A interests * Clauses addressing a wide variety of specific mergers and acquisitions situations * Specific language for even the smallest mergers and acquisitions variations you're likely to encounter * Includes CD-ROM containing Mergers, Acquisitions, and Buyouts: Sample Acquisition Agreements When it comes to companies buying other companies--particularly public company acquisitions--seemingly every transaction raises something unique, Mergers, Acquisitions, and Buyouts is recently updated with: * New step-by-step methods for structuring transactions, with tax, SEC, corporate, HSR, accounting and other mergers considerations * New table summarizing and contrasting terms of pro-buyer, pro-seller, and neutral stock & asset purchase agreements * Practical guidance based on the latest mergers and acquisition news and the most recent corporate acquisition developments * New mergers legislation, M&A regulations, rulings, and M&A litigation outcomes impacting M&A transactions as reflected in recent mergers and acquisitions Frequently asked questions covered in Mergers, Acquisitions, and Buyouts: * What are the tax considerations in our M&A transaction? * Are there recent deals or developments affecting our M&A transaction? * How do we handle unwanted assets? * How do we handle reorganizations that are solely for voting stock? * What are the tax aspects of LBO structuring and financing? * What should we be taking into consideration regarding management compensation? * How do you execute a mergers and acquisitions strategy using Partnership, LLC, or REIT? |
| accounting for pik interest: Investment Companies , 2008 |
| accounting for pik interest: Accounting Trends in Corporate Reports American Institute of Certified Public Accountants, 2008 |
| accounting for pik interest: Audits of Investment Companies, with Conforming Changes as of May 1, 1996 American Institute of Certified Public Accountants. Investment Companies Special Committee, 1996 |
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