Answered: Explain the concepts of business…

Explain the concepts of business acquisitions, mergers and consolidation of financial statements with examples. Note explain in detailed

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter15: Dividend Policy

Section: Chapter Questions

Problem 18QTD

See similar textbooks

Related questions

Q: Discuss the relative merits of different methods of corporate growth (e.g. internal development,…

A: Corporate expansion strategies and their accompanying economic benefits may be classified into at…

Q: Explain research and development purchase in business acquisitions.

A: Research & Development is a process by which a business obtains new knowledge and uses it to…

Q: It is the bringing together of separate entities or businesses into one reporting entity. * O Merger…

A: Merger means 2 company's will together form into one company new Acquisition means one company will…

Q: Explain the differences between IFRS and US GAAP in process of business acquisitions and…

A: Accounting standards are the rules and guidelines used by the business to prepare financial…

Q: Bring a real case (one of the latest cases) as an example for business acquisition. The case should…

A: A recent case of business acquisition- Walmart acquired Flipkart Acquirer- Walmart (US-based retail…

Q: Explain the role of audit committee in Merger and Acquisition

A: Audit is the assessment or investigation of different books of records by an examiner followed by…

Q: What is the controlling interest percentage for a consolidated accounting financial statement?

A: Consolidated financial statements: These financial statements are consolidated financial statements…

Q: Demonstrate the consolidation process when a corporate ownership structure is characterized by…

A: Definition: A connecting affiliation exists when 2 or more entities within a particular business…

Q: What are the sources of synergy after acquisitions and mergers?

A: Merger and acquisitions is two companies working together for the purpose of achievement of…

Q: the accounting valuations for the post -control step acquisitions to the Berkshire Hathaway…

A: Warren Buffett has appeared to be round for appropriate strategies to guess Berkshire Hathaway's…

Q: Compare and contrast these charges, paying particular attention to how they are created and…

A: Fixed ChargeIf a debt is subject to a fixed charge, the borrowing will be secured against a…

Q: (b) Discuss the effects and procedure for mergers and acquisition.

A: (b) Mergers and acquisitions is used to describe the accumulation of companies or their assets…

Q: What are the four different methods of accounting for investment? Please concisely explain the four…

A: As multiple questions are given, we will answer three question. Methods of accounting for investment…

Q: Explain the concepts of business acquisitions, mergers and consolidation of financial statements.

A: The merger or acquisition of smaller companies into large business entities is known as…

Q: What has been the likely effect of the Gramm-LeachBliley Act on financial consolidation?

A: The Gramm-Leach Bliley act is a act that has been enacted in order to explain the provisions of the…

Q: The report should contain the following : -Introduction about the banks -Reasons for merger -…

A: The bank is a financial institution that helps in wealth creation through investments. Also, banks…

Q: During reorganization, how should a company’s income statement be structured?

A: Reorganization: Reorganization under the federal bankruptcy code is a way to salvage the company…

Q: Explain the key steps in the acquisition method in accounting for business combination. Why Fair…

A: Business Combination- It is a situation when an entity acquires the business of other entity or…

Q: What are the types of work performed, the overall areas of focus, and/or other relevant information…

A: The following types of works need to performed 1) sourcing the transaction 2) Appraising the deal…

Q: What are the different financial risks in business acquisition and combination?

A: Financial risk is the risk that the company has overpaid or has got more leverage than required or…

Q: Which of the following is the best theoretical justification for consolidated financial…

Q: What merger-related activities are undertaken byinvestment bankers?

A: The roles of the investment bank will differ depending on whether the bank is representing the…

Q: what amount will be reported for Shareholders’ Equity in the combined company’s statement of…

A: Shareholders’ equity is the total amount of the capital which is associated with the shareholders…

Q: Question Bring a real case (one of the latest cases) as an example for business acquisition. The…

A: (Answer of first 3 parts) Business acquisition occurs when one company acquires majority stake (i.e.…

Q: Describe the equity method and the cost method of investor accounting for acquisitions

A: When there is some acquisition is made in some other business or some part of control is purchased,…

Q: Consolidated financial statements are typically prepared when one company has A. a substantial…

A: Consolidated financial statements are prepared when a parent-subsidiary relationship exists. A…

Q: Distinguish between operating mergers and financial mergers.

A: Definition: Merger: A process or an agreement where two or more firms combine together to form one…

Q: Which consolidation method should be used in preparing consolidated financial statements in…

A: To achieve the objective of having common accounting language all over the world, The International…

Q: Which of the following is not true with regard to a business combination accomplished in the form of…

A: This is the question of parent Company and subsidiary company. Parent company has controlling…

Q: Methodologies to assess risks and benefits associated of Mergers and Acquisitions

A: Mergers and acquisitions refer to two different concepts. Merger means the process in which two…

Q: Explain an example of basic accounting equation for a corporation with shareholders’ equity expanded…

A: Under the expanded accounting equation, the equity is split into four elements. By doing so, it can…

Q: Describe the ideas and valuation techniques that underpin the acquisition method of accounting for…

A: This question explains about the ideas and valuation techniques that underpin the acquisition method…

Q: Expenses in acquiring another company may be related to the issuance of stocks , legal , financial…

A: The expenses are treated in the books in the following ways: - Issuance of Stock: The entry for…

Q: How is the amount assigned to the non-controlling interest normally determined when a consolidated…

Q: Which liabilities constitute debt within the context of firm's valuation during mergers and…

A: Mergers and Acquisition is the process by which a company consolidates or transfers the ownership of…

Q: Explain the co

A: Answer : An acquisition is defined as a company dealings wherever one company purchases some or all…

Q: Explain how purchase accounting is implementedin a merger. Does the accounting profession nowrequire…

A: Purchase accounting can be defined as the practice of revising the assets and liabilities of the…

Q: Under what circumstances does a company prepare consolidated financial statements?

A: Consolidated statements must be prepared 1. when one company owns more than 50% of the outstanding…

Q: While a company goes through reorganization, how should its assets and liabilities be reported?

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

Q: The cost of registering equity securities in a business combination should be recorded as

A: Equity securities are those stock or securities which provides ownership rights in the company.…

Question

Explain the concepts of business acquisitions, mergers and consolidation of financial statements with examples.

Note explain in detailed

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Explain the concepts of business acquisitions, mergers and consolidation of financial statements. Note explain in detailed
Management accounting- mergers and aquisitions Mergers are often categorised as horizontal, vertical or conglomerate. Explain each of these type of mergers in detail.
Regarding Business Combinations: Critically analyse the key characteristics of an acquiring company as far as mergers and acquisition is concerned.
Discuss the concept of accounting for business combinations and the different methods used, such as the acquisition method and the pooling of interests method.
1.Describe how the consolidated process tends to disguise information needed to analyze the financial operations of a diversified company
Consolidated financial statements are typically prepared when one company has A. a substantial equity interest in the net assets of another company. B. the controlling financial interest in another company. C. significant influence over the operating and financial policies of another company. D. accounted for its investment in another company by the equity method.
When are companies required to file consolidated financials? How is it recorded?
How does corporate restructuring impact a company's financial statements?
What are the potential financial impacts of a corporate restructuring on a company's financial statements?
Explain an example of basic accounting equation for a corporation with shareholders’ equity expanded to highlight its composition.
Explain the equity and consolidation methods of accounting.
Describe the process of consolidating financial statements for a parent company and its subsidiaries, including the elimination of intercompany transactions and balances.