Although this transaction will not materially impact 2019 financial results due to the timing of close and acquisition accounting
, Rambus expects this acquisition to be accretive in 2020, the company said.
As a result of the reverse acquisition accounting
for the Startek and Aegis business combination on July 20, 2018, the results presented for the quarter ended June 30, 2018 include only Aegis financial results.
Non-GAAP revenue adds back $1 million for the impact of an acquisition accounting
adjustment recorded to reduce acquired deferred revenue to the fair value of the remaining obligation.
Tucows is required to apply acquisition accounting
to the assets and liabilities acquired, including fair valuation of the acquired deferred revenue balance, which will lower the reported Adjusted EBITDA contribution in the first approximately one year period following the acquisition.
"Unless you work for a company that is a serial acquirer, you are not applying acquisition accounting
day to day, like you are other GAAP areas like revenue recognition and inventory accounting," said Greg McGahan, CPA, a partner at PwC.
The comparability of the Company's operating results with past performance is impacted by acquisition accounting
adjustments and merger-related expenses associated with past and current acquisitions.
FASB is considering beginning a project to reduce the differences between business combinations and acquisition accounting
. The board wants to focus on three areas in the asset acquisition guidance that differ significantly from business combinations accounting--transaction costs, in-process research and development (IPR&D), and contingent consideration.
Gray, who joined Yadkin in 2014, was responsible for accounting policy, general accounting, SEC reporting, and acquisition accounting
in addition to his role in the external audit.
IFRS 3 requires that an acquirer be identified in any business combination and acquisition accounting
principles be applied.
Generally Accepted Accounting Principles (GAAP) are required to use acquisition accounting
whether they involve a stock acquisition or an asset acquisition.
• M&A due diligence and acquisition accounting
assistance including purchase price allocation assistance and valuation reports.