Transaction accounting support for a telecom tower company
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Case Study
Transaction accounting support for a telecom tower company
One of the largest telecom tower companies, with a portfolio of approximately 20,000 towers across Saudi Arabia, Europe, and other parts of Asia
The business situation
Pursuant to the carve-out of 14,000+ towers from the parent company, they required support with the following:
- Accounting implications of the transaction, e.g., business vs. asset acquisition, accounting for sublease, and IFRS 16 vs. IFRS 15 assessment for the customer contracts with telcos
- Assess and review the IFRS 16 tool, including performing UAT
- Reconciliation of the sublease data and IFRS 16 values with the head leases held by the parent company
More recently, they required assistance with IFRS 3 reporting and post-acquisition integration (including alignment of accounting policies) for the acquisitions in Europe (~4,500 towers) and Asia (~100 towers). Finally, they also needed help reassessing useful life, residual value, and decommissioning costs for the tower and related assets
Our team’s role
Pre-Deal Accounting Support
Providing Pre-deal support to assist with the accounting considerations arising from the transaction
IFRS 16 Lease Review
Assistance with reviewing the leasing tools and assessing compliance with IFRS 16 requirements
ESG Ratings
Evaluating ESG ratings from agencies such as MSCI, ISS ESG, EcoVadis, and Sustainalytics to identify gaps and improvement areas
IFRS 3 Reporting and Policy Alignment
IFRS 3 reporting, including accounting policy alignment and technical accounting support
Our team’s role
The value our team added
- Based on the group's existing knowledge and sector experience alongside IFRS 16 tools, our team helped the company achieve timely transaction closure and implementation of the IFRS 16 tool, including data reconciliation. This assisted the company with accurate financial and management reporting
- As part of our support for the company’s recent acquisitions in Europe and Asia, our involvement helped close the audit in a timely manner. We participated in discussions with the auditors of the subsidiaries and the group auditors on technical accounting matters around accounting policy alignment and related quantification
Simplify Global Transaction Accounting
From Pre-Deal Assessments to Post-Acquisition Policy Alignment, We Support Every Stage with Precision
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