Define the term Acquisitions.

Q: What are the attributes associated with a successful acquisition strategy?

A: Acquisition: Acquisition refers to when one company purchases a another company’s share partly or…

Q: What has been the rationale for LVMH acquisitions

A: Question is based on the concept of business management

Q: Describe the exchanges in nonmonetary asset.

A: A non-monetary transaction refers to a commercial or business transaction that happens without the…

Q: What are the Criteria of “Creditable Acquisitions” Please describe!

A: There are many factors that determine if an acquisition is a creditable one or not and for which we…

Q: Required: 1. Determine the goodwill or gain on bargain purchase from the above acquisition.

A: When one company acquired 50% of the capital and assets of another company or more is known as…

Q: Discuss any potential synergistic gain to the acquire and the target entity.

A: Synergistic gains arises due to acquisition and mergers. It can determined by comparing the value of…

Q: What do the financial statements of the acquirer include?

A: In consolidation or merger or acquisition there is an acquirer and an acquiree The acquire purchases…

Q: Explain how the accounting treatment differs between purchased and internally developed intangible…

A: Intangible assets: Intangible assets are the long-term assets having no physical existence. However,…

Q: What is 'fair value',and why is it relevant to consolidation accounting?

A:

Q: goodwill or (gain on acquisition) arising on consolidation ace price?

A: Fair value of assets = P1,280,000  Less: Fair value of Liabilities = P716,000  Identifiable net…

Q: Internal control applicable to ________________________ may logically be extended to the entire…

A: It is the process of assuring the organizations' activities are performed efficiently and…

Q: Define the term depreciation recapture?

A: Depreciation recapture is the earnings acknowledged by the offer of depreciable capital assets that…

Q: why does fair value seeking for an acquisition?

A: Reasonable worth is a term with a few implications in the monetary world. In contributing, it…

Q: Discuss and explain the tension between “Asset Transformation” and “Asset Conversion”

A: There exists a subtle yet systematic tension between asset transformation and asset conversion. Both…

Q: Define acquiring company

A: The acquisition means when one company buys the more than 51% stake in another company. Companies…

Q: What basic principle do U.S. GAAP and IFRS rely upon in recording the initial acquisition value for…

A: Generally Accepted Accounting Principles (GAAP): Generally Accepted Accounting Principles are the…

Q: Define Intangible Assets.

A: Definition:   Assets: These are the resources owned and controlled by business and used to produce…

Q: Briefly list out the economic and financial reasons used to justify acquisitions

A: Financial acquisitions are the methods through which a corporation acquires or purchases a majority…

Q: Define targeted share repurchases

A: One targeting firm tries to avoid a hostile acquisition by purchasing a prospective customer's own…

Q: What kind of acquisition is it?

A: Mckinsey divided the types of acquisition based on the purpose of such acquisition. 'Acquisition for…

Q: How do you identify intangible assets such as usufruct in modern transactions? Justify with examples

A: In a usufruct, the property rights of usus and fructus are merged. Usus refers to the right to use…

Q: Discuss and give examples of some of the indicators that affect asset classes

A: Asset classes:- An asset class is basically a collection of investments with some comparable…

Q: What are the reporting issues in a sale with a repurchase agreement?

A: Repurchase agreement: A form of short term borrowing for dealers in government securities is called…

Q: Describe Expenditures Subsequent to Acquisition.

A: Definition:   Property, plant, and equipment: These assets are long-lived economic resources which…

Q: What is an Acquisition costs?

A:

Q: What occurs under a step acquisition?

A: A step acquisition happens when the acquiring entity acquires control over an entity for which it…

Q: Describe the accounting treatment for costs subsequent to acquisition.

A: Costs subsequent to acquisition: It refers to those additional expenditures which are related to the…

Q: Example: Cost of acquisition n

A: Cost of acquistion is the cost of acquiring assets of the company .  As…

Q: Define Liquidation?

A: Liquidation is the process through which an entity comes to an end and is being formally closed. It…

Q: intangible asset (or asset class) that interests you.

A: Intangible assets are Goodwill , parent , Trademark , Copy right , Software etc. I am explaining…

Q: Discuss the nature of acquiring fixed assets?

A: Fixed assets are one of the major investments of a company and this covers the huge part of the…

Q: Define the term Liquidation.

A: Liquidation is the process of bringing a business to an end and distributing its assets to…

Q: ancing for an acquisition structu either an asset or stock acquisit

A: To explain the correct option as,

Q: goodwill at the acquisition date

A: The acquisition related costs should be written off as expenses in the books of the acquirer. They…

Q: Describe the concepts and valuation principles underlying the acquisition method of accounting for…

A: Acquisition: The acquisition refers to the business combination when one entity or organization…

Q: What is the goodwill arising from the acquisition?

A: A business combination occurs when an entity acquires control over an organization. Asset purchases…

Q: Define Noncash Acquisitions.

A: The acquisition involves one party selling out to another wherein the buying party combines both the…

Q: Describe the valuation principles of the acquisition method.

A: Acquisition:   The acquisition refers to the business combination when one entity or organization…

Q: Define the term capitalize.

A: Plant Assets: Plant assets are referred to the long-term and tangible assets that business use in…

Q: Difference between Internal reconstruction and External reconstruction (Merger and acquisition)?

A: Definition: Acquisition: The acquisition refers to the business combination when one entity or…

Q: Explain Depreciable Property?

A: Accordance with the IRS (internal revenue service) rule, any asset which is eligible for the…

Q: Explain the nature of lump-sum purchases including the factor(s) to be considered and the…

A:

Q: Define Purchase commitments.

A: Purchase Commitments refer to the commitments or contract made by a company with its suppliers to…

Q: What is the nature of a sale on consignment?

A: Consignment is a business sale transaction between a consignor and a consignee. Under consignment…

Q: Explain Amortize Goodwill? Give an example?

A: Amortize Goodwill: Goodwill is an intangible asset amortization of goodwill means a reduction in the…

Q: Define reorganization costs.

A: The reorganization costs are also known as restructuring costs.

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.