Other Key Process Decisions
Mid-period acquisition date:
▪ Scenario:
− Acquisition date: May 15, 2024
− Prepaid rent needs to be accounted for as
of the opening balance sheet date
▪ Post-acquisition schedule start date for "fresh
start" accounting can be entered as of a mid-
month date, pro-rating expense recognition
▪ Prepaid rent: depending on timing of rental
payments and terms of the purchase
agreement, prepaid rent can be entered in the
post-acquisition schedule, with a
corresponding ROU Asset adjustment
▪ Predecessor stub period reporting: Tango
reports can be leveraged to determine rent
expense prorations if needed.
RSM | 24
