Cost Accounting Standards (CAS): Implications When Acquiring Companies

In the third episode of Cherry Bekaert’s Cost Accounting Standards (CAS) podcast series, Brendan Halloran, a Director with Cherry Bekaert Advisory, is joined by Jeffery Annessa, a Senior Manager in Cherry Bekaert’s Government Contractor Industry practice, to discuss CAS implications during mergers and acquisitions. Cherry Bekaert’s government contracting consulting team has years of CAS experience and can help you navigate CAS compliance issues or disclosure statement development.This episode highlights key topics to help guide your business forward, including:Scenarios and implications to CAS when:A CAS-covered company acquires a company that is non-CAS coveredA non-CAS covered company acquires a company with CAS coverageThe two most common approaches on how to treat the company you are acquiring, specifically:A legal entity dissolved and integrated fullyA legal entity being maintained as a wholly owned subsidiaryUnderstanding CAS structure as it relates to the companySteps to consider when merging with or acquiring a companyCommon areas that do not constitute a cost accounting practice changeImpacts and considerations when the acquired company is CAS coveredAreas a CAS-covered company should focus their attention on when acquiring, including:Transitional accounting periodIndirect rate structureSimilarity of laborAllocationsRestructuring costPitfalls to avoidAreas a non-CAS covered company should focus their attention on when acquiring, such as:Analysis of the CAS-covered contracts to understand period of performance, numbers and money magnitudeAdditional exposureCompliance requirementsIf you haven’t already, catch up on part one and two of the series:Cost Accounting Systems Series: Part 1 – An OverviewCost Accounting Systems Series: Part 2 – Growing a GovCon Related GuidanceWebinar Recording: Cost Accounting Standards (CAS): Part 1 – CAS Coverage Types, Common Standards, and CAS ApplicabilityWebinar Recording: Cost Accounting Standards (CAS): Part 2 – Cost Accounting Changes and ImpactView all Government Contracting Podcasts