Research Case Studies

Research Case Studies - Research Case Studies Advanced...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Research Case Studies Advanced Accounting—Misty Bancroft Abbott’s Acquisition of Advanced Medical Optics 1. How did Abbott account for the Advanced Medical Optics acquisition? Abbott acquired Advanced Medical Optics on February 25, 2009. To record the acquisition, the acquisition method was used, so it was recorded at $1.4B. 2. What allocations did Abbott make to the assets acquired and liabilities assumed in the acquisition? Provide a calculation showing how Abbott determined the amount allocated to goodwill. Abbott estimated fair values as followed for the assets acquired and liabilities assumed: (Dollars in Millions) Cash consideration: Total fair value $1.4 Acquired intangible assets, non-deductible 0.9 0.2 Acquired net tangible assets 0.5 Acquired debt (1.5) Deferred income taxes recorded at acquisition (0.3) Total net fair value of net identifiable assets (0.20) Goodwill $1.60 3. How will Abbott account for the in-process R&D acquired in the combination?
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Abbott will account for the acquired in-process R&D as an indefinite life intangible asset. This
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 09/28/2011 for the course ACC 431 taught by Professor Talbert during the Spring '08 term at National.

Page1 / 4

Research Case Studies - Research Case Studies Advanced...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online