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  "documentTitle": "MSCI Inc. (MSCI)",
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  "presentationDate": "2024-01-17 00:00:00",
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      "text": "Spruce Point questions the accounting choices made in the Burgiss acquisition. Notably, the decision to apply a lag in reporting may reflect Burgiss' inability to produce timely financials. Furthermore, the decision to capitalize deal costs appear to put it in violation with GAAP which dictates that acquisition-related costs be expensed in the periods occurred. MSCI did not need to raise equity or debt to fund the $190.8 million investment.",
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      "text": "Spruce Point questions the accounting choices made in the Burgiss acquisition. Notably, the decision to apply a lag in reporting may reflect Burgiss' inability to produce timely financials. Furthermore, the decision to capitalize deal costs appear to put it in violation with GAAP which dictates that acquisition-related costs be expensed in the periods occurred.",
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      "text": "Concern With Lagged Reporting: This policy election may reflect Burgiss' inability to produce timely financial statements which we believe reflects poorly on a financial company having been founded 30 years ago.",
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      "text": "GAAP Guidance On ASC 805-10-25-23: Capitalization of deal costs appears to be a violation of GAAP. Acquisition-Related Costs: 25-23 Acquisition-related costs are costs the acquirer incurs to effect a business combination... The acquirer shall account for acquisition-related costs as expenses in the periods in which the costs are incurred...",
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      "kind": "paragraph",
      "text": "Equity Method Disclosure: \"In January 2020, MSCI entered into a strategic relationship with Burgiss... The Company is applying a policy election to recognize its share of Burgiss' earnings on a three-month lag...\"",
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      "text": "In January 2020, MSCI entered into a strategic relationship with Burgiss, a global provider of investment decision support tools for private capital. The Company acquired a 40% non-controlling interest for $190.8 million, including capitalized costs, which is accounted for as an equity method investment with the Company's share of Burgiss' earnings being recognized in \"Other expense (income), net\" in the Condensed Consolidated Statements of Income. The Company is applying a policy election to recognize its share of Burgiss' earnings on a three-month lag. Accordingly, the Company has not recognized any earnings or amortization related to its investment in Burgiss in the three months ended March 31, 2020. MSCI has also elected to apply the nature of the distribution approach to determine the classification of the distributions it receives from its equity method investees. — MSCI 2020 10-K",
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      "text": "MSCI 2020 10-K and Spruce Point research and analysis",
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      "text": "Spruce Point Observes Weaknesses In The Accounting For Burgiss",
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