100% tevredenheidsgarantie Direct beschikbaar na betaling Zowel online als in PDF Je zit nergens aan vast
logo-home
Summary Business Combination €9,61   In winkelwagen

Samenvatting

Summary Business Combination

 7 keer bekeken  0 keer verkocht
  • Vak
  • Instelling

This notes is a summary for the topic business combination for Financial Accounting and Reporting which concludes the computation of goodwill and a gain on bargain purchases, the fair value of the assets at the acquisition date and among others

Voorbeeld 3 van de 16  pagina's

  • 29 juni 2024
  • 16
  • 2023/2024
  • Samenvatting
avatar-seller
BUSINESS COMBINATION (PART 1)

Business Combination

- A transaction or other event in which an acquirer obtains control of one or more businesses

Control

- Has the power to direct the investee’s relevant activities

- Holds more than 50% (51% or more) interest in the investee’s voting rights

Other Ways of Obtaining Control

a. Acquirer has the power to appoint or remove majority of the BOD

b. Acquirer has the power to cast majority of votes at board meetings or equivalent bodies

c. Acquirer has the power over more than half of the voting rights because of an agreement
with other investors

d. Acquirer controls the operating and financial policies due to law or agreement

Variety Ways of Obtaining Control

a. Cash or other assets

b. Incurring liabilities

c. Issuing equity interest

d. More than one type of consideration

e. Without transferring consideration including contract alone

Business

- an integrated set of activities and assets that is capable of being conducted and managed
for the purpose of providing goods or services to customers, generating investment income or
generating other income from ordinary activities

Elements of a Business

a. Input- any economic resource that result to an output when one or more processes are
applied to it such as non-current assets, intellectual property, the ability to obtain access to
necessary materials or rights and employees

,b. Process- any system, standard, protocol, convention or rule that when applied to an input,
creates an output such as strategic management processes, operational processes and
management processes.

c. Output – the result of 1 and 2 above that provides goods or services to customers,
investment income or other income from ordinary activities

Identifying a Business Combination

- An entity determines whether a transaction is a business combination in relation to the
definition provided under PFRS 3

- If the assets acquired (and related liabilities assumed) do not constitute a business, the
entity accounts for the transaction as a regular asset acquisition and not a business
combination. Accordingly, the entity applies other applicable standards.

Accounting for Business Combination (Acquisition Method)

a. Identify the acquirer

b. Determine the acquisition date

c. Recognizing and measuring goodwill.

i. Consideration transferred

ii. Non-controlling Interest in the acquire

iii. Previously held equity interest

iv. Identifiable assets acquired and liabilities assumed on the business
combination

Identifying the Acquirer

The acquirer is the entity that obtains control of the acquire. The acquire is the business that the
acquirer obtains control in the business combination.

Guidance in identifying the acquirer

a. Who is the transferor of cash or other resources or assumes liabilities?

- the acquirer is usually the entity that transfers cash or other assets or incurs the liabilities

b. Who is the issuer of shares?

- the entity that issues equity interests except in Reverse Acquisition wherein the issuing
entity is the issuer

, i. whose owners, as a group, have the largest portion of the voting
rights of the combined entity

ii. whose owners have the ability to appoint or remove a majority of the
members of the governing body of the combined entity

iii. whose (former) management dominates the management of the
combined entity

iv. pays a premium over the pre-combination fair value of the equity
interests of the other combining entity or entities

c. Who is larger?

- The acquirer is usually the larger

d. Who is the initiator of the combination?

- The acquirer is usually the one who initiated the combination

e. Substance over form

- If the new entity is formed to effect the business combination, the acquirer is identified as

i. To issue equity interest, one of the combining entities that existed
before the business combination is the acquirer

ii. To transfer cash or other assets or incur liabilities, the new entity is the
acquirer

Determining the acquisition date

Acquisition date

- the date on which the acquirer obtains control of the acquire

- normally the closing date or the date on which the acquirer legally transfers the
consideration, acquires the assets and assumes the liabilities of the acquiree except when there
is a written agreement to that effect.

Recognizing and measuring goodwill

Formula:

Consideration Transferred xx

NCI xx

Voordelen van het kopen van samenvattingen bij Stuvia op een rij:

√  	Verzekerd van kwaliteit door reviews

√ Verzekerd van kwaliteit door reviews

Stuvia-klanten hebben meer dan 700.000 samenvattingen beoordeeld. Zo weet je zeker dat je de beste documenten koopt!

Snel en makkelijk kopen

Snel en makkelijk kopen

Je betaalt supersnel en eenmalig met iDeal, Bancontact of creditcard voor de samenvatting. Zonder lidmaatschap.

Focus op de essentie

Focus op de essentie

Samenvattingen worden geschreven voor en door anderen. Daarom zijn de samenvattingen altijd betrouwbaar en actueel. Zo kom je snel tot de kern!

Veelgestelde vragen

Wat krijg ik als ik dit document koop?

Je krijgt een PDF, die direct beschikbaar is na je aankoop. Het gekochte document is altijd, overal en oneindig toegankelijk via je profiel.

Tevredenheidsgarantie: hoe werkt dat?

Onze tevredenheidsgarantie zorgt ervoor dat je altijd een studiedocument vindt dat goed bij je past. Je vult een formulier in en onze klantenservice regelt de rest.

Van wie koop ik deze samenvatting?

Stuvia is een marktplaats, je koop dit document dus niet van ons, maar van verkoper barbieloves. Stuvia faciliteert de betaling aan de verkoper.

Zit ik meteen vast aan een abonnement?

Nee, je koopt alleen deze samenvatting voor €9,61. Je zit daarna nergens aan vast.

Is Stuvia te vertrouwen?

4,6 sterren op Google & Trustpilot (+1000 reviews)

Afgelopen 30 dagen zijn er 82956 samenvattingen verkocht

Opgericht in 2010, al 14 jaar dé plek om samenvattingen te kopen

Start met verkopen
€9,61
  • (0)
  Kopen