ACCT20002 Lecture 12: ACCT20002 - Lecture 12 - Business-Combinations-Valuation-and-Elimination

• School: University of Melbourne
• Department: Accounting
• Course: ACCT20002
• Professor: All

Document Summary

Two types: direct acquisition: purchase assets and assume liabilities. If control exists - parent, subsidiary (prepare consolidated nancial statements. If no control/signi cant in uence - mere investment. Direct acquisition: recognition: as of acquisition date, the acquirer shall recognise, separately from goodwill, the identi able assets acquired and the liabilities assumed, an asset is identi able if: It is separable - capable o being separated or divided from the entity and sold or transferred (regardless of whether the entity intends to do so); or. Nder"s fees, professional and consulting fees (including valuation fees. Bargain purchase = purchase consideration < fvina. Goodwill recognised in a business combination is an asset reprinting the future economic bene ts arising from other assets acquired in a business combination that are not individually identi ed and separately recognised. Consideration can be settled in the following forms: cash.