What accounting rules govern the timing and finalization of purchase price allocations?
1. Compare the preliminary purchase price allocation and final purchase price allocations and identify the two largest adjustments.
• What accounting rules govern the timing and finalization of purchase price
2. Explain some reasons that could explain why these items changed so much.
• Include a discussion of the accounting involved for the accounts that were changed the most.
3. Were there any earnings quality clues in either Chicago Bridge & Iron’s or Shaw Group’s pre acquisition financial statements that could have led investors to be skeptical about the acquisition?
4. What happened to the combined company after the acquisition? Where did the Shaw group assets end up and what was their final resting place?