Certara Investor Day Presentation Deck
FASB final guidance no longer requires purchase accounting
adjustment
Subsequent to our third quarter earnings release, the FASB issued final guidance that requires
companies to apply ASC 606 to recognize and measure contract assets and liabilities from
contracts with customers acquired in a business combination. This creates an exception to the
general recognition and measurement principle in ASC 805.
As a result, companies will recognize contract assets and contract liabilities at amounts
consistent with those recorded by the acquiree immediately before the acquisition date.
The standard is effective for fiscal years beginning after December 15, 2022; however, Certara
will early adopt the standard for fiscal year 2021.
No deferred revenue valuation adjustment will be required, and Certara will not be providing guidance
or report an Adjusted Revenue metric
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