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Carve-out financial statements require significant judgments and estimates, but the ASC and SEC guidance is limited. Ensuring that all transactions related to the carve-out entity have been identified and properly reflected in the financial statements is challenging and time-consuming.  Opportune has significant experience with current energy industry practices for preparing carve-out financial statements and can assist clients through the entire process, including consideration of the following:

  • Identification of the carve-out entity and operations
  • Inclusion of assets and liabilities, including derivatives and pushdown of debt
  • Allocation of income and expenses, such as share-based compensation, derivatives and income taxes
  • Impairment of long-lived assets and goodwill