...Topic 4 Business combination 企业合并 AASB 3 –BUSINESS COMBINATION: Appendix A contains the defined term, while Appendix B contains application guidance. A business combination is defined in Appendix A to AASB3 as: A transaction or other event in which an acquirer需方 obtains 获得control of one or more businesses. Control: control exists when an investor is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect hose returns through its power over the investee. The purpose of defining a business is to distinguish between the acquisition 收购of a group of assets that does not constitute构成 a business- such as a number of desks ,bookcases and filing cabinets- and the acquisition of a business. A group of assets that does constitute a business is accounted for under AASB 3 AND must be capable of providing a return. A group of assets that does not constitute a business is accounted for under AASB 116 ,AND measured at cost. Acquistion method: 收购方法 1. Indentify the acquirer 收买人/需方 2. Determine the acquisition date 3. Recognize and measure the identifiable assets acquired, the liabilities assumed, and any non-controlling interest in the acquiree. 被收购者 4. Recognise and measure goodwill 商誉or a gain from a bargain purchase. 获得廉价的收入 The acquisition method is applied on the acquisition date, which is the date the acquirer obtains control of the acquiree. On this date, the business combination occurs. AASB3 also...
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...Prepared by Emma Holmes The nature of a business combination IFRS 3 defines a business combination as ‘the bringing together of separate entities or businesses into one reporting entity’. A ‘business’ is not just a group of assets, rather, it is an entity able to produce output. Three general forms of business combination are as follows (assuming the existence of 2 companies – A Ltd and B Ltd): Accounting for a business combination: basic principles IFRS 3 prescribes the purchase method in accounting for a business combination. The key steps in this method are: The above steps result in determining the existence of any goodwill or excess on combination. 1 Accounting for a business combination: identifying the acquirer The business combination is viewed from the perspective of the acquirer The acquirer is “the combining entity that obtains control of the other combining entities or businesses” Accounting for a business combination: selecting the right date The following dates are relevant to a business combination: Acquisition date Agreement date Date of exchange Accounting for a business combination: determination of fair value IFRS 3 requires that the fair value of assets, liabilities and contingent liabilities is determined in performing the relevant calculations in a business combination. Fair value is basically market value Fair value is determined by judgement, estimation and a three-level ‘fair value hierarchy’ as follows: Note the similarities...
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...Università di Torino Facoltà di Economia Course of Business Combination Exercises November 2012 Exercise 1 Question and Assumptions • Please estimate the Enterprise Value (EV) of “Company Alpha” (total and per share) by applying the market comparables on page 3. • Main Financial Data of “Company Alpha” – EBITDA per Share 2013: €4.40 – EBITDA per Share 2014: €5.70 – Sales per Share 2013: €18.10 – Sales per Share 2014: €22.20 – Total Shares Outstanding: 8,250,000 2 Exercise 1 (cont’d) Note 1. Global luxury/brands average excludes Brunello Cucinelli, Hermes, Michael Kors, Prada and Salvatore Ferragamo 3 Exercise 2 Question and Assumptions • Based on the assumptions below and on key financials of page 5: - Please estimate the NPV as of 1 Jan 2012 of the Cash Flows in 2012, 2013 and 2014, including the Terminal Value • Main Assumptions – WACC: 10% – Terminal Multiple on Cash Flow: 5x – Capital Expenditure 2012: €0 MM – Capital Expenditure 2013: €130 MM – Capital Expenditure 2014: €0 MM 4 Exercise 2 (cont’d) Key Financials €MM 2012E 2013E 2014E Sales 660 710 770 Operating Expenses 400 430 450 Depreciation 70 70 80 Tax 75 80 85 5 Exercise 3 Question and Assumptions • Based on the assumptions below for a merger transaction and on the key financials reported on page 8: – What is the Acquirer’s 2013 EPS accretion/ dilution in the event of a transaction 60% in shares and 40%...
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...Parent’s purchase of a legal subsidiary in bankruptcy qualify as a business combination under ASC 805? Parent lost its ability to remove and replace majority of the board of directors of Poor Son as a result of the bankruptcy. This supports that Parent lost control of its wholly owned subsidiary, Poor Son. Therefore, Parent’s acquisition of the reorganized Poor Son does not meet the scope exception in ASC 805-10-15-4(c). Under ASC 805-10-20, a business combination occurs when an acquirer obtains control of one or more businesses. The given facts state that Parent will receive 100% of the new equity interests in the re-organized Poor Son. In addition, Parent will have the power to name all members of Poor Son’s new board of directors. ASC 805-10-55-2 provides the examples of transactions in which an acquirer can obtain control of an acquired business. Based on ASC 805-10-55-2(c), Parent has control of the new reorganized Poor Son because it acquired 100% of equity interests of Poor Son. In addition, Parent has the majority of voting interests of Poor Son because it has the responsibility to appoint all new board of directors of Poor Son. According to ASC 810-10-15-8, an acquirer has the power to control if the acquirer has the ownership of a majority voting interests. Based on these, Parent has control of the reorganized Poor Son. To conclude, Parent’s acquisition of Poor Son in bankruptcy qualifies as a business...
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...and machinery. Land could be rezone into a residential subdivision with a fair value of 30 million after considering cost for preparation. Equipment could be sold at auction for 2 million. The facility is estimated to be worth 36 million as acquired. Individual fair value of land is 21 million and for the buildings and machinery 7 million. In process Research an Development submited to FDA for aproval has a fair value of 15 millions Baked Beans trademark has a 3 million value. Management will not use nor sell the trademark. Trademark has a carrying value of 2 million ind Baked Beans financial statements. Financial Reporting Issue: Business combinations Discussion of financial reporting issue: First of all we need to determine if the transaction is a business combination process. The ACS 805 defines a business combination as a transaction or other event in which an acquirer obtains control of one or more businesses. Transactions sometimes referred to as true mergers or mergers...
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...Assignment 1: Business Combinations Cindy Yoon Professor Robert Neely ACC 401 – Advanced Accounting October 24, 2013 Abstract In this paper, I will provide an explanation for the business combination method I selected in expanding the corporation by acquiring another firm, the reason for selecting that business combination method, and how the purchase will grow the business. I will also analyze the accounting requirements for the business combination method I selected and how I determined goodwill was impaired and the financial impact of such impaired goodwill. The business combination method I selected is the acquisition method. Business combinations have implemented the newly created accounting treatment called the “acquisition method.” The major changes in the acquisition method include changes to fair value measurement, goodwill recognition, and non-controlling interests. In acquisition method, the parent company reports the net assets of the acquired company at the price that it was paid for. This price includes any cash payment, the fair market value of any shares issued, and the present value of any promises to pay cash in the future. A key point of the purchase method is that the parent consolidates the book value of all the subsidiary’s assets and liabilities and then the fair value, broken down between Net Book Value and Fair Market Value increments, of the subsidiary's assets and liabilities are added to the parent's own assets and liabilities...
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...IFRS 3 企業合併 項目 範圍 共同個體(mutual entities)及單以合約達 成之企業合併 定義 企業合併 IFRS 3 （修訂版） 將此類企業合併納入準則範圍 現行 IFRS 3 不適用 IFRS 3 使收購公司對一個或多個事業 (business)取得控制力的交易或事 件 透過經營與管理一群具整合性的 活動或資產，目的在於取得報酬 IFRS 3（修訂版）較為強調控制 力的取得 一群具整合性的活動或資產若尚 未開始進行已規劃的主要營運， 則不能視為 business 事業 (business) 購買法 (Acquisition method) IFRS 3 （ 修 訂 版 ） 以 "acquisition Purchase method 並 未 明 確 的 引 用 method"取代"purchase method"，並 至左列(1)與(2) 要求： (1) NCI 之認列與衡量；及 (2)合併所取得之商譽或優惠價格 收購(bargain purchase)之認列與 衡量 (1)初始認列為收購成本之一部分； (1)若或有價金之發生符合很有可 能 (probability) 且 能 可 靠 衡 量 (reliably measurable)，於初始認 (2)未來事件的發生與否(例如未達 列時應列為收購成本； 成既定盈餘目標)，將不視為衡 量 期 間 的 調 整 (measurement (2)若未來事件未發生，則應調整 period adjustment) ，因此不調整 商譽； (3)除或有價金的支付與權益商品 (3)後續的會計處理將視該或有價 金是否初始認列為權益或負債， 該事件是否應視為衡量期間的 調整； (4)無相關揭露要求。 (4)增列相關揭露規範。 相關，續後調整應調整權益外， 或有價金的續後調整應調整商 譽金額； 收購成本及商譽； 或有價金 收購成本 股份基礎給付獎酬計 畫 因企業合併收購公司以股份基礎 給付獎酬計畫取代被收購公司原 有之股份基礎給付獎酬計畫，相 無特別規定。 項目 IFRS 3 （修訂版） 關獎酬費用是否屬收購成本， IFRS 3（修訂版）提供相關指引。 現行 IFRS 3 企業合併所發生之成 本 收購成本 推動企業合併案之相關成本，通 常於發生當期即費用化。 推動企業合併案之相關成本，通 常包含於收購成本內，影響商譽 金額的計算。 無特別規定。 取得之可辨認資產與承擔之負債之認列與衡量 備 抵 評 價 (valuation 於收購日以公平價值衡量資產， allowances) 或 準 備 雖未來現金流量具不確定性，仍 (provisions)的禁止 禁止使用獨立的備抵評價科目(例 如備抵呆帳)。 收 購 公 司 意 圖 將 處 分 收購公司應以公平價值衡量該資 所 取 得 資 產 ， 或 其 用 產。 途不同於其他市場參 與者 初始認列或衡量之例外情況 待出售資產 應依《IFRS 5 Non-current Assets Held for Sale and Discontinued Operations》之衡量規定處理。 凡是符合 IFRSs 架構(Framework) 下對負債的定義，當現有的義務 (present obligation)係來自過去所發 生的事件(past event)，且該負債公 平價值能可靠衡量者，應認列該 負債。 無特別規定。 應依淨公平價值衡量此類資產。 或有負債 可能發生的負債(possible...
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...2/8/2016 Problems and Prospects for Modern Business Enterprises of Bangladesh Submitted to: Dr. Sabnam Jahan Associate Professor Department of Management University of Dhaka. Submitted by: Abul Kalam Azad EMBA Student code: 3-16-32-063 Course code & Title: EM: 501 Introduction to Business Abul Kalam Azad BANGLADESH POLICE Table of Contents Introduction ................................................................................................................................................................. 2 Business Background of Bangladesh ....................................................................................................................... 2 Problems and Prospects for Modern Enterprises ............................................................................................... 4 Poverty and inequality ........................................................................................................................................... 4 Social development ................................................................................................................................................ 4 Political affairs, good governance and human rights ...................................................................................... 4 Security matters ..................................................................................................................................................... 5 Indigenous...
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...505 ASSIGNMENT 1 GLOBAL BUSINESS TODAY To purchase this visit here: http://www.activitymode.com/product/mkt-505-assignment-1-global-business-today/ Contact us at: SUPPORT@ACTIVITYMODE.COM MKT 505 ASSIGNMENT 1 GLOBAL BUSINESS TODAY MKT 505 Assignment 1 - Global Business Today – The Hofstede Study Refer to Hofstede model in Chapter 4 of the Textbook and the Global Business Today Interaction, and complete this assignment.Note: the Global Business Today Interaction can be found in the online course shell. Write a three to four (3-4) page paper in which you: 1. Create a problem statement for the client, Azure Sky Tea, based on the Hofstede model. 2. Classify possible combinations of countries for location of the Azure Sky Tea’s offices based on the Hofstede model. Include a discussion of the home country’s (U.S.) relative position on the Hofstede scales as compared to other countries.Note: Utilize the Hofsetede module to include all parameters (i.e., individualism, uncertainty, power distance, masculinity) for the classification. 3. Choose two (2) countries as potential locations for the Azure Sky Tea’s new international offices. Next, develop a set of specific recommendations for the company. In your recommendations: a. Include the preliminary data that you gathered in the previous question. More Details hidden... Activity mode aims to provide quality study notes and tutorials to the students of MKT 505 Assignment 1 Global Business Today in order to ace their...
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...Combinations and Permutations What's the Difference? In English we use the word "combination" loosely, without thinking if the order of things is important. In other words: |[pic] |"My fruit salad is a combination of apples, grapes and bananas" We don't care what order the fruits are in, they could also be | | |"bananas, grapes and apples" or "grapes, apples and bananas", its the same fruit salad. | | | | |[pic] |"The combination to the safe was 472". Now we do care about the order. "724" would not work, nor would "247". It has to be | | |exactly 4-7-2. | So, in Mathematics we use more precise language: |[pic] |If the order doesn't matter, it is a Combination. | |[pic] |If the order does matter it is a Permutation. | | |[pic] |So, we should really call this a "Permutation Lock"! | In other words: A Permutation is an ordered Combination. |[pic] |To help you to remember...
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...Page |1 PERMUTATIONS and COMBINATIONS If the order doesn't matter, it is a Combination. If the order does matter it is a Permutation. PRACTICE! Determine whether each of the following situations is a Combination or Permutation. 1. Creating an access code for a computer site using any 8 alphabet letters. 2. Determining how many different ways you can elect a Chairman and Co-Chairman of a committee if you have 10 people to choose from. 3. Voting to allow 10 new members to join a club when there are 25 that would like to join. 4. Finding different ways to arrange a line-up for batters on a baseball team. 5. Choosing 3 toppings for a pizza if there are 9 choices. Answers: 1. P 2. P 3. C 4. P 5. C Page |2 Combinations: Suppose that you can invite 3 friends to go with you to a concert. If you choose Jay, Ted, and Ken, then this is no different from choosing Ted, Ken, and Jay. The order that you choose the three names of your friends is not important. Hence, this is a Combination problem. Example Problem for Combination: Suppose that you can invite 3 friends to go with you to a concert. You have 5 friends that want to go, so you decide to write the 5 names on slips of paper and place them in a bowl. Then you randomly choose 3 names from the bowl. If the five people are Jay, Ted, Cal, Bob, and Ken, then write down all the possible ways that you could choose a group of 3 people. Here are all of the possible combinations of 3: Jay, Ted, Cal Jay, Ted, Bob Jay, Ted, Ken Jay, Cal...
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...Probability and Combinations Questions With Explanations Collected by Bunuel Solutions by Bunuel gmatclub.com 1. Mary and Joe are to throw three dice each. The score is the sum of points on all three dice. If Mary scores 10 in her attempt what is the probability that Joe will outscore Mary in his? A. 24/64 B. 32/64 C. 36/64 D. 40/64 E. 42/64 Expected value of a roll of one dice is 1/6(1+2+3+4+5+6)=3.5. Expected value of three dices is 3*3.5=10.5. Mary scored 10 so the probability to have more then 10, or more then average is the same as to have less than average=1/2. P=1/2. Answer: B. Discussed at: http://gmatclub.com/forum/mother-mary-comes-to-me-86407.html 2. Denise is trying to open a safe whose combination she does not know. IF the safe has 4000 possible combinations, and she can try 75 different possibilities, what is the probability that she does not pick the one correct combination. A. 1 B. 159/160 C. 157/160 D. 3/160 E. 0 When trying the first time the probability Denise doesn't pick the correct combination=3999/4000 Second time, as the total number of possible combinations reduced by one, not picking the right one would be 3998/3999. Third time 3997/3998 ... And the same 75 times. So we get: [pic] every denominator but the first will cancel out and every nominator but the last will cancel out as well. We'll get 3925/4000=157/160. Answer: C. Discussed at: http://gmatclub.com/forum/4000-possible-combination-84435.html ...
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...Sign in to wikis by wetpaint MDM4U1@FMG Home Discussions Photos Videos News Updates Members Sign in or Report page Share Share this 6.3 Probabilities Using Counting TechniquesThis is a featured page In a number of different situations, it is not easy to determine the outcomes of an event by counting them individually. Alternatively, counting techniques that involve permutations and combinations are helpful when calculating theoretical probabilities. This section will examine methods for determining theoretical probabilities of successive or multiple events. Permutation? or Combination? The following flow chart will help determine which formula is suitable for any given question. By simply following a series of "yes" or "no" questions, the appropriate formula can be determined. Flow Ex. 1 - Using Permutations: 6.3 Probabilities Using Counting Techniques - MDM4U1@FMG 6.3 Probabilities Using Counting Techniques - MDM4U1@FMG The specific outcome of Mike starting in lane 1 and the other two starting in lane 2 and lane 3 can only happen one way, so n(A) = 1. Therefore, 6.3 Probabilities Using Counting Techniques - MDM4U1@FMG The probability that Mike will start in the first lane next to his other brothers in lane 2 and 3 is approximately 0.00101. Ex. 1(a) - Using Permutations: Exactly Three People form a line at a grocery store. What is the probability that they will line up in descending order...
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...Pascal Triangle Pascal Triangle Josue Tagle ITT-Tech Pascal's Triangle One of the most interesting Number Patterns is Pascal's Triangle (named after Blaise Pascal, a famous French Mathematician and Philosopher).To build the triangle, start with "1" at the top, then continue placing numbers below it in a triangular pattern. Each number is the two numbers above it added together (except for the edges, which are all "1").(Here I have highlighted that 1+3 = 4) | | Patterns Within the Triangle | | DiagonalsThe first diagonal is, of course, just "1"s, and the next diagonal has the counting numbers (1,2,3, etc). The third diagonal has the triangular numbers (The fourth diagonal, not highlighted, has the tetrahedral numbers.) | Odds and EvensIf you color the Odd and Even numbers, you end up with a pattern the same as the Sierpinski Triangle | | | | | Horizontal SumsWhat do you notice about the horizontal sums? Is there a pattern? Isn't it amazing! It doubles each time (powers of 2). | Exponents of 11Each line is also the powers (exponents) of 11: * 110=1 (the first line is just a "1") * 111=11 (the second line is "1" and "1") * 112=121 (the third line is "1", "2", "1") * etc! | | | But what happens with 115 ? Simple! The digits just overlap, like this: The same thing happens with 116 etc. | | | SquaresFor the second diagonal, the square of a number is equal to the sum of the numbers next to it and below both of those.Examples:...
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...Permutations and Combinations Factorials A factorial is represented by the sign (!). When we encounter n! (known as 'n factorial') we say that a factorial is the product of all the whole numbers between 1 and n, where n must always be positive. For example 0! is a special case factorial. This is special because there are no positive numbers less than zero and we defined a factorial as a product of the numbers between n and 1. We say that 0! = 1 by claiming that the product of no numbers is 1. The reasoning and mathematics behind this is complicated and beyond the scope of this page, so let's just accept 0! as equal to 1. This works out to be mathematically true and allows us to redefine n! as follows: For example The above allows us to manipulate factorials and break them up, which is useful in combinations and permutations. Useful Factorial Properties The last two properties are important to remember. The factorial sign DOES NOT distribute across addition and subtraction. Permutations and Combinations Permutations and Combinations in mathematics both refer to different ways of arranging a given set of variables. Permutations are not strict when it comes to the order of things while Combinations are. For example; given the letters abc The Permutations are listed as follows Combinations on the other hand are considered different, all the above are considered the same since they have the exact same letters only arranged different. In other words, in combination, you can't just...
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