Explain the Four Key Steps Involved in the Acquisition Method

question 12

Essay

Explain the four key steps involved in the acquisition method of accounting for business combinations under AASB 3.
a.Identify an acquirer
b.Determine the acquisition date.
c.Recognise and measure the identifiable assets acquired,the liabilities assumed,and any noncontrolling interest in the acquiree.
d.Recognise and measure goodwill or a gain from a bargain purchase.
The above steps result in determining the existence of any goodwill or gain on bargain purchase which must be accounted for.

Understand the concepts and processes in conducting a behavioral assessment, including operational definitions and interrater reliability.

Understand the concept of earnings per share (EPS) and how it is affected by mergers and acquisitions.

Learn how to calculate and understand goodwill in acquisition transactions.

Comprehend the calculation and significance of net present value (NPV) in mergers and acquisitions.

---

Definitions:

Display Prominently

To place or arrange something in a way that it is easily seen and attracts attention.

Sizing Handle

A graphical user interface tool that allows users to adjust the dimensions of window panes, images, or shapes by dragging its corners or edges.

Text Adds Depth

The use of textual elements in design or storytelling that enhances the complexity, meaning, or understanding of the content.

Monitor Dimensions

The physical size of a computer monitor's display area, usually measured diagonally in inches.