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Fresh-Start Accounting Services

Implementing the plan of reorganization and revaluing your business


Recording the emergence from bankruptcy is one of the most complex and demanding accounting challenges an organization may face. It places significant demands on an organization’s management team to deal with the equivalent of a year-end close upon emergence, account for restructuring of legal entities, adopt the requirements of ASC 852 (formerly SOP 90-7) and establish the opening balance sheet of the successor organization.

Understanding the bankruptcy process and the related technical accounting requirements, obtaining a valuation of all the assets and liabilities of a business enterprise, and pushing the results down to every legal entity can be an enormous burden on financial, operational and systems management and their supporting teams. Completing the process as quickly as possible will allow management to move forward and focus on the operations of the newly reorganized business.

The Fresh-Start process necessitates two significant accounting events 
  1. Recording the effects of a Plan of Reorganization 
  2. The revaluation of both assets and liabilities for debtors and non-debtors alike

These events are also typically coupled with a significant amount of merger and restructuring activity. Each event must be completed in accordance with accounting requirements.

Learn more about our Fresh-Start Accounting Services:
How we can help
The planning phase
The implementation phase
How to contact us for more information

How we can help

Deloitte and its related entities (collectively, the Deloitte U.S. Entities) is a leader in helping companies implement Fresh-Start accounting.

The professionals of Deloitte are “on the ground” with our clients bringing specialists in bankruptcy, accounting and valuation, as well as IT specialists from Deloitte Consulting LLP and tax specialists from Deloitte Tax LLP. 

The Deloitte U.S. Entities have significant experience managing this event in some of the largest corporate bankruptcies in U.S. history. From planning to systems readiness, to implementation and validation, the Deloitte U.S. Entities can help companies from start to “Fresh-Start.” 

Planning and implementation phases



  • Understand the requirements, coordinate activities and processes to determine accounting efforts around the Fresh-Start event, including implementing the Plan of Reorganization and revaluing the balance sheet


  • Understand how to manage the process for reconciling and allocating Liabilities Subject to Compromise through bankruptcy and beyond to help limit future impact on financial statements


  • Streamline management’s responsibility to gather information and revalue the balance sheet as well as the requirements of reconciling the revalued assets to the Enterprise Value Systems
  • Establish a process to facilitate multiple year-end closings within a single year and coordinate various subsystem updates


  • Determine the tax effects of a restructuring and develop tax strategies to help minimize tax effects


  • Assist in determining the appropriate accounting for:
    • Recoveries and other effects of the Plan of Reorganization
    • Revalued assets and liabilities resulting from the valuation process
  • Develop financial statement disclosures


  • Assess the Plan of Reorganization to determine all economic events to be accounted for
  • Calculate the recoveries and gains resulting from the Plan of Reorganization


  • Value assets as of the Fresh-Start reporting date and provide to accounting
  • Allocate the revalued balance sheet in accordance with ASC 805 (formerly SFAS 141 (R)) and push down to legal entities


  • Assist in determining and validating system-related activities necessary to record the Plan of Reorganization events and balance sheet revaluations


  • Assist in recording the tax impact to the appropriate legal entities

Contact us

Please send us your questions, or request that one of our leaders get in touch with you, via on our e-mail form.  From the drop down menu, select "Please contact me about your services." include your desired contact information, and insert "Fresh-Start Accounting" in the comments section. 

Learn more about our services and our fresh-start accounting leaders by downloading a printer-friendly PDF above.

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As used in this document, “Deloitte” means Deloitte LLP and its subsidiaries. Please see for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.


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