At acquisition moment separate balance sheet of Delhaize at fair value withing separate bs Ahold (as asset) New combined business = consolidated bs Ahold Delhaize; this is what we evaluate the business on = functioning of the entity as a whole. But doesn’t mean that is the only thing they report; for legal entity that are part of group; often have obligation that they have to make separate financial statement (Delhaize to Belgium authority). In consolidated statements also find separate statements. From stakeholders perspective the separate fs are more of interest (depends of what you are primarily interested in; different government / regulations).
Subscribe to view the full document.
Accounting for business combinations – basic principles:IFRS 3 prescribes the acquisition method in accounting for a business combination. The key steps inthis method are:1.Scope = Determine if transaction is a business combi;2.Identify acquirer (even if it is a true merger of equals, you always have to identify acquirer);3.Determine acquisition date (considering fact we use fair value it can me a big difference);4.Recognize and measure the identifiable assets acquired, the liabilities assumed and any non-controlling interest in the acquire;5.Recognize and measure goodwill or a gain from the bargain purchase.
As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.
Temple University Fox School of Business ‘17, Course Hero Intern
I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.
University of Pennsylvania ‘17, Course Hero Intern
The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.
Tulane University ‘16, Course Hero Intern
Ask Expert Tutors
You can ask 0 bonus questions
You can ask 0 questions (0 expire soon)
You can ask 0 questions
(will expire )