Nothing Special   »   [go: up one dir, main page]

Prelim

Download as pdf or txt
Download as pdf or txt
You are on page 1of 3

ACQUISITION METHOD (PERS 3) Merger : A+ B = A/ B

ADTAG

1 Acquirer consolidation : A+ B =
C

.
2 Acquisition Date
. F1 of consideration Transferred
3
4
. Assets and Liabilities of AcquiredCompany
.
5 Goodwill or Bargain Purchase Gain
6 JE to record business combination
.
7 JE to record acquisition costs

consideration rules

cash/monetary assets Fair Value


-

non-monetary asset Fair Value


-

.
2

.
3 liabilities -

Present value of future cash flows

.
4
equity instruments FV & acquisition date
-

. Contingent
5 consideration LABILITY -
FV of each
reporting date >
-

changes-DF/L
EQUTY
-

will not be remeasured


ASSETS & LIAB ACQUIRED
current -
FY .
2 LIABILITIES-FY/DY
HFS -
FY- CS
1 Tangible Assets
:
GW is not included in FUNAA
PPE -
FY Note -

Proj Ben Asset


=
Proj Ben Obli
. . > Liability
- GW FUCT TFUNAA - (ASSET)
Proj Ben Obli Proj Ben
=
. . Asset =
Asset
BPG = FUCT < FUNAA -(P/L)

not recognized as id in assets ;


.
included in GW BESTRUCTURING (PEBC
1 .
Formal Plans have been communicated

(1) assembled workforce of acquired - .


2 Preexisting Liability
(2) Potential contract w/ new customers . not for the benefit of
3 the acquirer

(3) contingent assets 4 pre-existing liability is not conditional

ACQUISITION RELATED COSTS

Operating Lease (Acquiree)


Direct-expense
Fa : intangiblea
1

.
2 Indirect-expense Lessee

.
3 cost of issuing equity instruments -
Dr
. Share Premium
Lessor -
not recognized
4
. cost of issuing debt instruments -

Bond Issue cost

Balance Sheet
-
does not include equity balances re set
PROVISIONAL VALUES initial acquisition ; one year perid
a
after
:
Adjustments made a
during measurement
period -
retrospective adjustment ; I goodwill/BPG

d after measurement period prior period adjustment


-

measurement period

after initial acquisition adjusted to GW/BPG


year period
-

↓ one
the acquirer receives information -
/L
when
. The date
2

MP Trash p

D/L
Can
-

PPAX casn
-
so

You might also like