Regarding examination of special management matters (merger, division, transfer, etc.)
Updated: July 2024, 5
There are cases that require special accounting!
When there is a company merger, split, or business transfer, it is possible to undergo a normal accounting review using the closing date as the reference date.
Depending on the local government conducting the bidding, there are cases in which you cannot participate in the bidding unless you undergo a special management matters examination (special economic examination).
What is special accounting audit?
Before and after a merger, split, transfer, etc., many of the items related to the score of the accounting review (contents of financial statements, number of construction projects, number of engineers, etc.) change.
In order to calculate scores that take these changes into consideration, you can undergo an economic audit (special economic audit) using the date of the merger, etc. as the reference date.
There are cases in which special accounting committees require bids.
Depending on the local government conducting the bidding, a notification of the results of a special accounting review may be required in the event of a merger, division, transfer, etc. This is to make selections taking into account the effects of mergers, etc.
In addition, whether to undergo a special economic examination or a regular economic examination, etc.
The construction company will make the decision based on the closing date, date of merger, etc., date of application, and guidance from the competent administrative agency.
As mentioned below, especially in the case of special economic examinations, it takes time from the start of the procedure to the receipt of the notification.
If we wait until it becomes necessary to undergo a special economic audit, there is a risk of losing out on bid participation.
Preparations for the special financial hearing must begin as early as possible.
Special accounting process flow
① Decide on the general framework for merger, division, transfer, etc.
②Prior consultation with the competent administrative agency
*Merger (or division, transfer, etc.) contract, scheme diagram,
Construction history, financial statements, etc. in consideration of mergers, etc.
④ Occurrence of merger, etc.
⑤Application for business situation analysis
*At this point, it is desirable that the pre-submitted documents have been checked by the competent administrative agency.
⑥Special Economic Review (main application)
⑦Receipt of result notification
*Detailed procedures and schedules may vary depending on the administrative agency in charge and the time of year (whether it is a busy season for government offices, etc.).
Leave the handling of special accounting procedures, business succession, etc. to us!
We can also provide special accounting services for large and medium-sized companies.
We also handle approval procedures for business succession, etc. related to mergers, divisions, and transfers as a preliminary step to special economic examinations.
Click here for information on business succession, etc.↓↓
