Wähle die Ordner aus, zu welchen Du "Financial reporting-consolidation at Acquisitions Date" hinzufügen oder entfernen möchtest
A business combination...
refers to a transaction or other event in which an acquirer obtains control over one or more businesses.
is formed by a wide variety of transactions or events with various formats.
can differ widely in legal form.
unites two or more enterprises into a single economic entity that require consolidated financial statements.
Reasons Firms Combine:
Quick entry into new markets
Economies of scale
More attractive financing opportunities
Diversification of business risk
Increasingly competitive environment
Types of Business Combinations
statutory merger--> company A & company B = Company A
statutory consolidation--> Company A & Company B = Company C
Stock acquisition--> Company A & Company B = Company A is parent company of B
Why Consolidate Financial Statements?
Consolidated financial statements provide more meaningful information than separate statements.
Consolidated financial statements more fairly present the activities of the consolidated companies.
Yet, consolidated companies may retain their legal identities as separate corporations.
For statutory merger and statutory consolidation:
The acquired company ceases to be.
All appropriate account balances are physically consolidated in the financial records.
Consolidation is done only once.
For stock acquisition:
The acquirer and acquired both remain financially and operationally
Only the financial statement information (on work papers, not the actual records) is consolidated.
Consolidation is done regularly for every reporting period.
What if the consideration transferred does NOT EQUAL the Fair Value of the Assets acquired?
If the consideration is MORE than the Fair Value of the Assets acquired, the difference is attributed to GOODWILL
--> willing to pay more, why do you even pay more
If the consideration is LESS than the Fair Value of the Assets acquired, we got a BARGAIN!! And we will record a GAIN on the acquisition!!
Gain from bargain purchase=
It means that there is a gain from the bargain purchase.
Fair value of net identifiable assets
- Total consideration transferred
=Gain from bargain purchase
Lernkarten und mehr für Azubis
Schweizerischer Verband der Lehrkräfte für Wirtschaft und Recht
Lehrmittel für Elektroberufe