What accounting rules govern the timing and finalization of purchase price allocations?Explain some reasons that could explain why these items changed so much.

CHICAGO BRIDGE & IRON/SHAW GROUP ACQUISITION 2013

Locate the “preliminary purchase price allocation” for Chicago Bridge & Iron’s acquisition of Shaw Group in 2013. Hint: you can search all SEC documents on Edgar for name Chicago Bridge & Iron and key words “purchase price allocation” during a specific date range. Use quotations for key word searches if you want to find an entire phrase. Look during the few months following the acquisition announcement date.

• Locate the final purchase price allocation. Purchase price allocations are generally disclosed in 8-Ks and or 10-Ks and/or 10-Qs. • Compare the two purchase price allocations and identify the two largest adjustments.

• What accounting rules govern the timing and finalization of purchase price allocations? • 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.

• 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?

• What happened to the combined company after the acquisition? Where did the Shaw group assets end up and what was their final resting place?