Case study

US GAAP support to a leading accounting firm

Nexdigm worked with one of the top-ten global advisory and accounting firms based in the United States. They collaborated with them as an extended team to support their clients with accounting and advisory-related services in accordance with the US GAAP.

Nexdigm supported them with the newly introduced Accounting Standards Codification (ASC) and preparation of financial statements over a period of five months. The sectors that they supported include technology, healthcare, power generation, asset management, payroll, and HR management.

The client challenge

Their partner firm was in the process of implementing multiple tasks with very limited resources. Most of these tasks involved deliverables requiring adherence to statutory deadlines.

Furthermore, the obligatory integration of ASC 842, leases for all private companies, effective for the fiscal period commencing after 15 December 2021, presented an extra challenge impeding the prompt and efficient completion of these tasks.

The solution

Nexdigm assisted in the preparation of the lease work along with the schedule and proposed journal entries in accordance with ASC 842. They helped the firm prepare the standalone and consolidated financial statements of US GAAP while assisting in the preparation of the income statement comparison analytics as per the client’s requirement.

One of the clients acquired certain businesses that did not adhere to the US GAAP principles. They supported the firm in preparing the workings for revenue calculation as per US GAAP principles. Nexdigm also supported a few of the firm’s clients who had numerous complex employee stock options. They carried out the end-to-end workings of these stock options as per ASC 718, stock compensation. They provided services required experience and proficiency in US GAAP principles on stock options.

Value

The client received various schedules and work preparations to align with the newly introduced Accounting Standards: ASC 842 and ASC 606. Additionally, Nexdigm managed the preparation of financial statements for the Securities and Exchange Commission (SEC) submissions for a newly listed entity, and the completion of a detailed walkthrough of share-based payments of various tech-based companies. All these tasks were completed promptly and accompanied by the submission of the necessary statutory documentation.