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 company in the Middle East with a portfolio of ~20,000 towers in KSA, Europe and Pakistan.
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.
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 Pakistan (~100 towers). Finally, they also needed help with reassessment of useful life, residual value and decommissioning costs for tower and related assets.
Our team’s role
Pre-Deal Accounting Support
Pre-deal support to assist with the accounting considerations arising from the transaction.
Lease Data Reconciliation
Assistance with reviewing the leasing tools and suggesting if the requirements of IFRS 16 are met.
IFRS 16 Compliance Support
Evaluating ESG ratings from agencies such as MSCI, ISS ESG, EcoVadis, and Sustainalytics and identifying potential gaps and areas for improvement.
IFRS 3 Reporting
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 closure of the transaction and implementation of the IFRS 16 tool, including reconciliation of the data. This assisted the company with accurate financial and management reporting.
- As part of our support for the company’s recent acquisitions in Europe and Pakistan, our involvement helped with timely closure of the audit. We participated in discussions with the auditors of the subsidiaries as well as the group auditors on technical accounting matters around accounting policy alignment and related quantification.
Streamline Transaction Accounting
Expert Support for Seamless Telecom Tower Operations
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