As the number of companies filing for bankruptcy rises, many experts predict that during the next couple of years we will see a significant increase in the number of firms that will seek to reorganize under Chapter 11. Companies must be aware of and plan for the accounting requirements that are part of Statement of Position (SOP) 90-7, Financial Reporting by Entities in Reorganization under the Bankruptcy Code.

In the attached article published in Business Finance, Kirk Blair and Anthony Sasso, a partner and director, respectively, in the Reorganization Services practice of Deloitte Financial Advisory Services LLP, discuss fresh start accounting and the steps that management must take when preparing for the emergence of accounting requirements.

Access the complete article, which is used here with permission from Business Finance, below.