Accounting : The Differences Between U.s. Gaap And Ifrs-

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Accounting for Business Combinations -Focusing on the differences between U.S. GAAP and IFRS- I. INTRODUCTION Accounting for business combinations is one of the more complicated processes in accounting. The basic idea can be quite simple. The assets and liabilities being acquired are recorded at fair value and the fair value of the consideration transferred is allocated to them, but there are many problems that can occur that make consolidating financial statements quite difficult to accomplish. In this research paper some of the simpler accounting for business combinations will be discussed. Specifically I will discuss the accounting for a 100% ownership acquisition for which the subsidiary is dissolved. The procedures that will be discussed will correspond to the accounting for these situations that must be performed on the date of acquisition. There are much more complicated instances of business combinations in which multiple problems can cause the accounting to be much more complicated, such as cases in which there is less than 100% ownership of a subsidiary or when the accounting must be performed for reporting after the year of acquisition, but these will not be discussed here. Instead this research paper will spend time detailing the acquisition method for the aforementioned situation; this paper will also contain discussion of the authoritative texts for business combinations for both United States generally accepted accounting standards (henceforth referred to as
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