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Centri Case Study: A Collaborative Approach to Complex Accounting

Challenge

A private lender with multiple investment vehicles engages in loan participations and other types of securitizations on a periodic basis throughout the year. As transaction volume increased, the company saw itself performing the necessary accounting analyses for these transactions too close to its internal and external reporting deadlines. In some instances, the company was completing and releasing financial statements before the analyses were completed – a risk the company no longer wanted to take. The company acknowledged that they had one of two directions to pursue – either hire additional personnel or outsource the analyses.

Action

Knowing the complexities involved in assessing whether the transfer of financial assets is accounted for as a True Sale or a Secured Borrowing in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 860 – Transfers and Servicing (“ASC 860”), the company called on Centri to assist in performing the assessment on a transaction-by-transaction basis.

Resolution

Centri identified a core team comprised of members of its technical accounting practice and national office subject matter experts and worked with management to tailor a program in which Centri functions as an extension of management’s team both for the formal analyses pursuant to ASC 860 on a semi-annual basis and for on-call technical accounting guidance.

Results

With Centri’s custom-fit service team and structure in place, the company was able to obtain the formal analyses according to a structured timeline, had the ability to ask questions and collaborate with Centri’s service team on its conclusions, and, most importantly, could ensure that the information included in its internal and external reporting was complete and accurate well in advance of the company’s reporting deadlines.

For areas that require a high level of expertise, Centri can assemble an experienced team with the agility to function as a fully outsourced team or to work alongside your accounting group so that even the most complex matters are addressed timely and accurately the first time.

Blake Roberts

Partner | Technical Accounting Practice Leader | CPA

Blake is a Partner at Centri Business Consulting and the leader of the firm’s Technical Accounting Practice. He has more than 18 years of public accounting experience. View Blake Roberts's Full Bio

Michael Mastruzzo

Managing Director | Real Estate Practice Leader | CPA

Michael is a Managing Director at Centri Business Consulting and the leader of the firm’s Real Estate Practice. He joined Centri in June 2022 and assists in practice development across the firm’s service lines. View Michael Mastruzzo's Full Bio

Nathan Saunders

Senior Manager | CPA, MBA

Nate is a Senior Manager at Centri Business Consulting. He has over 10 years of experience in public accounting and consulting services. View Nathan Saunders's Full Bio