Chapter 2 Business Combinations Part 2

 B@@OSGQKGJ DO] MSPKGCPP @ONMKGBQKOGP (Bavbg`ca B``ougtkgj =)

LC@QS]C BKA =6=6 YCSP TC]GOG M. NKLLBG

@hbptcr = MSPKGCPP @ONMKGBQKOGP (Vbrt =)   cbrgkgj Omic`tkvcs •

 B``ougt dor muskgcss `onmkgbtkogs `onmkgbtkogs (b) b``onplkshca b``onplksh ca throujh shbrc-dor-shbrc cx`hbgjcs, (m) b`hkcvca kg stbjcs, bga (`) b`hkcvca wkthout trbgsdcr od `ogskacrbtkog.

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Cxplbkg thc “ncbsurcncgt pcrkoa„ kg rclbtkog to  muskgcss `onmkgbtkog `onmkgbtkogs. s.

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Akstkgjuksh whbt ks pbrt od b muskgcss `onmkgbtkog bga whbt ks pbrt od b “scpbrbtc “ scpbrbtc trbgsb`tkog. trbgsb`tkog.„ 

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 B``ougt dor scttlcncgt od prc-cxkstkgj prc-cxkstkgj rclbtkogshkp  B@@OSGQKG  B@@OSGQKGJ J DO] MSPKGCPP MSPKGCPP rclbtkogshkp @ONMKGBQKOGP (Bavbg`ca

 B``ougtkgj =) (my9 NKLLBG) NKLLBG)

Phbrc-dor-shbrc cx`hbgjcs •

Qhc `ogskacrbtkog trbgsdcrrca kg b muskgcss `onmkgbtkog b``onplkshca throujh b ncrc cx`hbgjc od cqukty kgtcrcsts mctwccg thc b`qukrcr bga thc b`qukrcc (or kts dorncr owgcrs)  owgcrs) ks ncbsurca bt thc b`quksktkog-abtc  dbkr vbluc od thc b`qukrcc‛s or b`qukrcr‛s cqukty kgtcrcsts,, whk`hcvcr ks norc rclkbmly actcrnkgbmlc. kgtcrcsts

 B@@OSGQKG  B@@OSGQKGJ J DO] MSPKGCPP MSPKGCPP @ONMKGBQKOGP (Bavbg`ca

 B``ougtkgj =) (my9 NKLLBG) NKLLBG)

Muskgcss `onmkgbtkog b`hkcvca kg stbjcs •

 B muskgcss `onmkgbtkog b`hkcvca kg stbjcs o``urs stbjcs o``urs whcg bg kgvcstor b`qukrcs baaktkogbl shbrcs dron bg kgvcstcc whk`h kt hba prcvkously hcla cqukty kgtcrcst bga thc baaktkogbl shbrcs pur`hbsca rcsults to thc kgvcstor omtbkgkgj `ogtrol ovcr thc kgvcstcc.

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 B``ougtkgj dor b muskgcss `onmkgbtkog b`hkcvca kg stbjcs 9 2.

]cncbs ]cncbsurc urc thc thc p prcv rcvkou kously sly hcla hcla cquk cqukty ty kgtcr kgtcrcst cst kkg g thc b b`quk `qukrcc rcc b btt kts b`quksktkog-abtc dbkr vbluc5 vbluc5 bga

=.

]c`ojg ]c`ojgkzc kzc thc jbkg jbkg or or lo loss ss og thc rcncbs rcncbsurc urcncg ncgtt kg9 kg9

•  Vrodkt or loss ‐ kd thc prcvkously hcla cqukty kgtcrcst wbs `lbsskdkca bs DTVL, Kgvcstncgt kg Bsso`kbtc, or Kgvcstncgt kg Iokgt Tcgturc. •  Othcr  ‐ kd .thc prcvkously hcla `onprchcgskvc kg`onc cqukty kgtcrcst wbs `lbsskdkca bs DTO@K. DTO@K  B@@OSGQKGJ DO] MSPKGCPP  B@@OSGQKGJ MSPKGCPP @ONMKGBQKOGP (Bavbg`ca

 B``ougtkgj =) - (my9 NKLLBG) NKLLBG)

Muskgcss `onmkgbtkog b`hkcvca wkthout trbgsdcr od `ogskacrbtkog •

Kg b muskgcss `onmkgbtkog kg whk`h go `ogskacrbtkog ks

trbgsdcrrca , thc b`qukrcr sumstktutcs thc b`quksktkog-abtc dbkr vbluc od kts kgtcrcst kg thc b`qukrcc dor thc b`quksktkog-abtc dbkr vbluc v bluc od thc `ogskacrbtkog trbgsdcrrca to ncbsurc jooawkll or b jbkg og b mbrjbkg pur`hbsc.

 B@@OSGQKG  B@@OSGQKGJ J DO] MSPKGCPP MSPKGCPP @ONMKGBQKOGP (Bavbg`ca

 B``ougtkgj =) - (my9 NKLLBG) NKLLBG)