Resumen de Apples and Oranges: : Financial Reporting for Small businesses facing a a Sale or Merger
The article examines small business accounting related to financial reporting of a sale of a business or its merger. Accounting of factors affecting earnings before interest, taxes, depreciation and amortization (EBITDA) used to establish valuation of a business are discussed. Issues frequently raised during the due diligence required for a merger are discussed including revenue recognition, inventory and gross margin and accrued liabilities.
