高级财务会计（英文版第13版）课件 第1章 企业合并

AdvancedAccountingThirteenthEditionChapter1BusinessCombinationsCopyright©2018,2015,2012PearsonEducation,Inc.AllRightsReservedLearningObjectives1.1

Understandtheeconomicmotivationsunderlyingbusiness

combinations.

1.2

Learnaboutthealternativeformsofbusinesscombinations,fromboththelegalandaccountingperspectives.1.3

Introduceaccountingconceptsforbusinesscombinations,

emphasizingtheacquisitionmethod.1.4

Seehowfirmsrecordfairvaluesofassetsandliabilitiesinan

acquisition.1.5

Appendix:Reviewaccountingconceptsforapoolingofinterests.EconomicMotivationsBusinessCombinationsTypesofBusinessCombinationsBusinesscombinationsunitepreviouslyseparatebusinessentities.Horizontalintegration–samebusinesslinesandmarketsVerticalintegration–operationsindifferent,butsuccessive,stagesofproductionordistribution,orbothConglomeration–unrelatedanddiverseproductsorservicesReasonsforCombinationsCostadvantageLowerriskFeweroperatingdelaysAvoidanceoftakeoversAcquisitionofintangibleassetsOther:businessandtaxadvantages,personalreasonsPotentialProhibitions/ObstaclesAntitrustFederalTradeCommissionprohibitedStaples’acquisitionofOfficeDepotRegulationFederalReserveBoardDepartmentofTransportationDepartmentofEnergyFederalCommunicationsCommissionSomestateshaveantitrustexemptionlawstoallowhospitalstopursuecooperativeprojects.FormsofBusinessCombinationsBusinessCombinationsLegalFormsofCombinationMergerOnecorporationtakesoveralltheoperationsofanotherbusinessentityandthatotherentityisdissolved.ConsolidationAnewcorporationisformedtotakeovertheassetsandoperationsoftwoormoreseparatebusinessentitiesanddissolvesthepreviouslyseparateentities.Mergers:

A+B=ACompanyAacquiresthenetassetsofCompanyBforcash,otherassets,orCompanyAdebt/equitysecurities.CompanyBisdissolved;CompanyAsurviveswithCompanyB’sassetsandliabilities.Example:OfficeDepotacquiredOfficeMax.OfficeDepotissued2.69shareofitsstocktoOfficeMaxshareholders.Howmightthishavehelpedbothcompanies?Consolidations:

E+F=DCompanyDisformedandacquiresthenetassetsofcompaniesEandFbyissuingCompanyDstock.CompaniesEandFaredissolved.CompanyDsurviveswiththeassetsandliabilitiesofbothdissolvedfirms.Consolidationhadalargeeffectonbanks.Bankswithassetsoflessthan$100milliondeclinedby85%between1985and1993,whilebankswithassetsover$10billionnearlytripledinnumber.KeepingtheTermsStraightInthegeneralbusinesssense,mergersandconsolidationsarebusinesscombinationsandmayormaynotinvolvethedissolutionoftheacquiredfirm(s).InChapter1,mergersandconsolidationswillinvolveonly100%acquisitionswiththedissolutionoftheacquiredfirm(s).Otherscenarioswillbeexploredinlaterchapters.“Consolidation”isalsoanaccountingtermusedtodescribetheprocessofpreparingconsolidatedfinancialstatementsforaparentanditssubsidiaries.AccountingforBusinessCombinationsBusinessCombinationsBusinessCombination(definition)Abusinesscombinationis“atransactionorothereventinwhichanacquirerobtainscontrolofoneormorebusinesses.Transactionssometimesreferredtoastruemergersormergersofequalsalsoarebusinesscombinations.”[FASBASC805-10]Aparent-subsidiaryrelationshipisformedwhen:Lessthan100%ofthefirmisacquired,orTheacquiredfirmisnotdissolved.U.S.GAAPforBusinessCombinationsSincethe1950sboththepoolingofinterestsmethodandthepurchasemethodofaccountingforbusinesscombinationsbecameacceptable.GAAPrequiresthatallbusinesscombinationsinitiatedafterDec15,2008beaccountedusingtheacquisitionmethod.[FASBACS810-10-5-2]InternationalAccountingMostmajoreconomiesprohibittheuseofthepoolingmethod.TheInternationalAccountingStandardsBoardspecificallyprohibitsthepoolingmethodandrequirestheacquisitionmethod.EliminationofpoolingmadeGAAPmoreconsistentwithinternationalaccountingstandards.RecordingGuidelines(1of2)Recordassetsacquiredandliabilitiesassumedusingthefairvalueprinciple.Ifequitysecuritiesareissuedbytheacquirer,chargeregistrationandissuecostsagainstthefairvalueofthesecuritiesissued,usuallyareductioninadditionalpaid-in-capital.Chargeotherdirectcombinationcosts(e.g.,legalfees,finders’fees)andindirectcombinationcosts(e.g.,managementsalaries)toexpense.RecordingGuidelines(2of2)Whentheacquiringfirmtransfersitsassetsotherthancashaspartofthecombination,anygainorlossonthedisposalofthoseassetsisrecordedincurrentincome.Theexcessofcash,otherassets,debt,andequitysecuritiestransferredoverthefairvalueofthenetassets(A–L)acquiredisrecordedasgoodwill.Ifthenetassetsacquiredexceedsthecash,otherassets,debt,andequitysecuritiestransferred,thenagainonthebargainpurchaseisrecordedincurrentincome.Example:PopCorp.(1of3)PopCorp.issues100,000sharesofits$10parvaluecommonstockforSonCorp.Pop’sstockisvaluedat$16pershare(inthousands).InvestmentinSonCorp.(+A)1,600blankCommonstock,$10par(+SE)blank1,000Additionalpaid-in-capital(+SE)blank600Example:PopCorp.(2of3)PopCorp.payscashof$80,000infinder’sandconsultingfeesand$40,000toregisterandissueitscommonstock(inthousands).Investmentexpense(E,-SE)80blankAdditionalpaid-in-capital(-SE)40blankCash(-A)blank120SonCorp.isassumedtohavebeendissolved.So,PopCorp.allocatestheinvestment’scosttothefairvalueoftheidentifiableassetsacquiredandliabilitiesassumed.Theexcesscostisgoodwill.Example:PopCorp.(3of3)Receivables(+A)XXXblankInventories(+A)XXXblankPlantassets(+A)XXXblankGoodwill(+A)XXXblankAccountspayable(+L)blankXXXNotespayable(+L)blankXXXInvestmentinSonCorp.(-A)blank1,600RecordingValuesinanAcquisitionBusinessCombinationsIdentifytheNetAssetsAcquiredIdentify:Tangibleassetsacquired,Intangibleassetsacquired,andLiabilitiesassumedInclude:Identifiableintangiblesresultingfromlegalorcontractualrights,orseparablefromtheentityResearchanddevelopmentinprocessContractualcontingenciesSomenoncontractualcontingenciesAssignFairValuestoNetAssetsUsefairvaluesdeterminedinpreferentialorderby:EstablishedmarketpricesPresentvalueofestimatedfuturecashflows,discountedbasedonanobservablemeasure,suchastheprimeinterestrateOtherinternallyderivedestimationsExceptionstoFairValueRuleUsenormalguidancefor:DeferredtaxassetsandliabilitiesPensionsandotherbenefitsOperatingandcapitalleases[FASBASC740]Goodwillonthebooksoftheacquiredfirmisassignednovalue.GoodwillGoodwillistheexcessoftheinvestmentcostoverthefairvalueofnetassetsreceived.Goodwillincludesthesumof:Fairvalueoftheconsiderationtransferred,Fairvalueofanynoncontrollinginterestintheacquiree,andFairvalueofanypreviouslyheldinterestinacquiree,Overthenetassetsacquired.ContingentConsiderationThefairvalueofcontingentconsiderationisdeterminedorestimatedattheacquisitiondate,anditisincludedalongwithotherconsiderationsgivenaspartofthecombination.Classifyingcontingencies:Contingentshareissuancesareequity.Contingentcashpaymentsareliabilities.Estimatedcontingenciesarerevaluedtofairvalueateachsubsequentreportingdate.Example–PamCorp.Data(1of2)PamCorp.acquiresthenetassetsofSunCo.inacombinationconsummatedon12/27/2016.TheassetsandliabilitiesofSunCo.onthisdateattheirbookvaluesandfairvaluesareasfollows(inthousands):Example–PamCorp.Data(2of2)BookValueFairValueCash$50$50Netreceivables150140Inventory200250Land50100Buildings,net300500Equipment,net250350Patents050Totalassets$1,000$1,440Accountspayable$60$60Notespayable150135Otherliabilities4045Totalliabilities$250$240Netassets$750$1,200AcquisitionwithGoodwillPamCorp.pays$400,000cashandissues50,000sharesof$10parcommonstockwithamarketvalueof$20pershareforthenetassetsofSunCo.Totalconsiderationatfairvalue(inthousands): $400+(50sharesx$20) $1,400Fairvalueofnetassetsacquired: $1,200Goodwill $200EntrieswithGoodwill(1of2)Theentrytorecordtheacquisitionofthenetassets:TheentrytorecordSun’sassetsdirectlyonPam’sbooks:InvestmentinSunCo.(+A)1,400blankCash(-A)blank400Commonstock,$10par(+SE)blank500Additionalpaid-in-capital(+SE)blank500EntrieswithGoodwill(2of2)Cash(+A)50blankNetreceivables(+A)140blankInventories(+A)250blankLand(+A)100blankBuildings(+A)500blankEquipment(+A)350blankPatents(+A)50blankGoodwill(+A)200blankAccountspayable(+L)blank60Notespayable(+L)blank135Otherliabilities(+L)blank45InvestmentinSunCo.(-A)blank1,400AcquisitionwithBargainPurchasePamCorp.issues40,000sharesofits$10parcommonstockwithamarketvalueof$20pershare,anditalsogivesa10%,five-yearnotepayablefor$200,000forthenetassetsofSunCo.Fairvalueofnetassetsacquired(inthousands)$1,200Totalconsiderationatfairvalue(40sharesx$20)+$200$1,000Gainfrombargainpurchase$200EntrieswithBargainPurchase(1of2)TheentrytorecordtheacquisitionofthenetassetsTheentrytorecordSun’sassetsdirectlyonPam’sbooks:InvestmentinSunCo.(+A)1,000blank10%Notepayable(+L)blank400Commonstock,$10par(+SE)blank400Additionalpaid-in-capital(+SE)blank200EntrieswithBargainPurchase(2of2)Cash(+A)50blankNetreceivables(+A)140blankInventories(+A)250blankLand(+A)100blankBuildings(+A)500blankEquipment(+A)350blankPatents(+A)50blankAccountspayable(+L)blank60Notespayable(+L)blank135Otherliabilities(+L)blank45

InvestmentinSunCo.(+A)blank1,000

Gainfrombargainpurchase(G,+SE)blank200GoodwillControversiesCapitalizedgoodwillisthepurchasepricenotassignedtoidentifiableassetsandliabilities.Errorsinvaluingassetsandliabilitiesaffecttheamountofgoodwillrecorded.Historically,goodwillinmostindustrializedcountrieswascapitalizedandamortized.CurrentIASBstandards,likeU.S.GAAP,Capitalizegoodwill,Donotamortizeit,andTestitforimpairment.GoodwillImpairmentTestingFirmsmusttestfortheimpairmentofgoodwillatthebusinessunitreportinglevel.Step1:Comparetheunit’snetbookvaluetoitsfairvaluetodetermineiftherehasbeenalossinvalue.Step2:Determinetheimpliedfairvalueofthegoodwillinthesamemannerusedtooriginallyrecordthegoodwill,andcomparetothegoodwillonthebooks.Recordalossiftheimpliedfairvalueislessthanthecarryingvalueofthegoodwill.WhentoTestforImpairmentGoodwillshouldbetestedforimpairmentatleastannually.Morefrequenttestingmaybeneededif:SignificantadversechangeinbusinessAdverseactionbyregulatorUnanticipatedcompetitionLossofkeypersonnelImpairmentorexpecteddisposallossesof:ReportingunitorpartofoneSignificantlong-livedassetgroupSubsidiaryBusinessCombinationDisclosuresBusinesscombinationdisclosuresinclude,butarenotlimitedto,thefollowing:GeneralinformationincludingcompanynamesanddescriptionReasonforcombinationNaturean