REASONS FOR COMBINATIONS
cost advantege
lower risk
fewer operating delays
avoidance of takeovers
acquisition of intangible assets
...
ANTI-TRUST CONSIDERATIONS
federal antitrust laws
state's statutory takeover regulations
LEGAL FORM OF BUSINESS COMBINATIONS
aquisitions
merger
consolidation
ACCOUNTING CONCEPTS OF BUSINESS COMBINATIONS
A business combination is a transaction or other event in which an acquirer obtains control of one or more businesses.
subsidiary
ACQUISITION METHOD
direct cost
investment cost
fair values
contractual contingencies
noncontractual contingencies
identifiable assets
intangible assets
goodwill
bargain purchase
THE SARBANES-OXLEY ACT OF 2002
PCAOB
SEC
pre-tax income
managements statement
traditional independent auditor's report
fairly presented
audit committee
relates parties
