Hubbell Policies

PURCHASE ACCOUNTING POLICY

English

Owner : Vice President, Controller

Last Review: 2016.03.31

FIN – 40

Department: Finance

POLICY

Purchase Accounting for Business Acquisitions must comply with Hubbell’s Acquisition Controls that are stated in exhibit A to this policy.

SCOPE

This policy and related procedure applies to the Purchase Accounting for all of Hubbell’s Business Acquisitions. This policy does not apply to the acquisition of assets that do not constitute a business (for example, purchases of PP&E, direct materials, and goods or services).

PURPOSE

To establish a consistent framework of controls for Hubbell’s Business Acquisitions and ensure the accounting for Business Acquisitions complies with Generally Accepted Accounting Principles (“GAAP”).

PROCEDURE

Exhibit A, included in the attachments within this policy detail the related acquisition controls and key SOX controls. In addition, the function owner and required evidence of the control included. Any questions regarding purchase price accounting, including technical accounting, and required documentation should be discussed with the Corporate Controller’s office. On a monthly basis all purchase price accounting entries shoul d be reviewed with the Corporate Controller’s office in advance of the month -end close.

ADMINISTRATION

Roles and Responsibilities. None

Monitoring, Evaluation and Review. None

Exceptions. None

ACCOUNTING AND DISCLOSURE

None

REPORTING

None

DEFINITIONS Business Acquisition shall mean is the acquisition of a controlling interest in the stock of an unrelated entity or the acquisition of a group of assets that constitute a business.

142