When the purchase price of a 100% ownership interest in an acquiree
is less than the fair value of the acquiree
's identifiable net assets, the acquisition is viewed as an exchange of unequal values.
Excluded from the acquisition accounting are costs the acquirer incurs to achieve synergies through exiting acquiree
activities or through relocation or termination of acquiree
Some commentators argued that if full goodwill is merely an extrapolation from the value of the goodwill paid by the acquiree
, the extrapolated value is unreliable.
IFRS 3 allows the acquirer to choose between recording the NCI at fair value (as with GAAP) or its proportional share of the acquiree
's identifiable net assets (the proportional method).
Consideration that includes share-based payment awards resulting from the acquirer's obligation to replace share-based payment awards of the acquiree
is measured at the fair value of the acquirer's replacement award.
is a business that the acquirer obtains control of in a business combination or a nonprofit activity or business that a not-for-profit acquirer obtains control of in an acquisition.
Other Utah acquirees
describe important aspects of the phases, including completing a thorough, reality-based prehoneymoon due diligence and business plan.
Also, the value of a noncontrolling equity interest in the acquiree
will be recognized at its acquisition-date fair value.
>Measure Fair Value of the Acquiree
Measuring the fair value of the acquiree
represents the most significant change from the purchase method of accounting used today.
The ED states that all business combinations within its scope consist of an acquirer that obtains control over the operations of the acquiree
. For the time being, the ED includes within its scope combinations in which one of the combining entities does not obtain control of the other combining entity.
This study posits that the fate of acquirees
' TMT is influenced by the fact that embedded resources within an acquiree
may have different values for different buyers (Wernerfelt 1984).
To illustrate the basic differences between the purchase and pooling method, assume the information included in Exhibit 1 relates to a business combination between Company X (the acquirer) and Company Y (acquiree