Change in Ownership

6 Months Ended

Jun. 30, 2011

MedQuist Holdings Inc. Change in Ownership [Abstract]

Change in Ownership

On February 11, 2011, MedQuist Holdings acquired additional shares of our common stock in a private exchange with certain of our shareholders, which resulted in their ownership increasing to over 80%. Effective February 11, 2011, we adopted the provisions of push down accounting. Accordingly the purchase accounting adjustments recorded at MedQuist Holdings related to the purchase of a 69.5% interest in us on August 6, 2008, as rolled forward to February 11, 2011, were recorded on our books and records. The basis pushed down to us is the basis recorded by MedQuist Holdings as of August 6, 2008, the transaction date, adjusted for activities recorded by MedQuist Holdings through February 11, 2011.

The following amounts were recorded on our financial records on February 11, 2011:



	Recorded as of February 11, 2011
Current assets	$	924
Property & equipment	88
Goodwill	339
Intangible assets other than goodwill	25,655
Deferred taxes	2,567
Total assets	$	29,573
Increase in shareholders' equity	$	29,573

The impact on our shareholders' equity was adjusted to reflect the new basis of accounting effective at the time that ownership increased to more than 80%. Accordingly, the equity accounts on Predecessor Company were not carried over to Successor Company. Successor Company's beginning equity as of February 11, 2011 represents the net assets of Successor Company as valued with the impact of push down accounting.

MEDQUIST INC 10-Q