Region: Philadelphia
Industry: Manufacturing,Transportation
Service Line(s): Accounting Services
Implemented FIN 46 across 145 operating locations globally, and supported various accounting and reporting initiatives.
Company Background:
Teleflex designs, manufactures, and distributes specialty engineered products, serving as a global supplier to the automotive, marine, industrial, medical and aerospace markets.
Business Challenge:
Teleflex is a decentralized company with over 140 entities. They needed to quickly determine what needed to be done to comply with FIN 46: Variable Interest Entity Consolidation in regards to these entities. They also needed guidance on the proper treatment of certain purchase accounting consolidating issues having determined they would need to take a $5 million P&L charge.
AC Lordi Consulting Solution:
AC Lordi created and sent a survey to the 140 entities in order to quickly gather relevant information needed to determine whether any of the entities needed to be consolidated or de-consolidated. After determining 4 entities needed to be consolidated, we included a disclosure in the initial financial statements in order to meet their immediate due date. We then fully consolidated these entities in all subsequent financials. We also reviewed the appropriate accounting rules and convinced their auditors that the correct treatment for the purchase accounting consolidation was that no P&L charge was necessary.
Value Delivered:
Teleflex was able to comply with the FIN 46 regulation and issue timely financial statements and 10-Q. By determining the correct accounting treatment for the purchase accounting consolidation and convincing their auditors, the company avoided what would have been a costly P&L charge of $5 million.