CCH Accounting for Business Combinations, Goodwill, and Other Intangible Assets offers practical guidance on accounting for business combinations, as well as intangible assets and goodwill under both U.S. and international accounting standards.
It covers a broad range of transactions, including: acquisitions of businesses by acquiring assets or stock; acquisitions of minority interests; leveraged buyouts; reverse acquisitions; rollup transactions; and transfers and exchanges between companies under common control.
This comprehensive resource draws on a variety of accounting literature to amplify the text of FASB Statements No. 141, Business Combinations, and No. 142, Goodwill and Other Intangible Assets, for U.S. standards, and International Financial Reporting Standard 3, Business Combinations, and International Accounting Standard 38, Intangible Assets, for international standards, as issued by the International Accounting Standards Board.
It provides professionals with a practical reference resource by selectively combining information from the official text of these statements, along with information drawn from the rules and releases of the SEC, consensuses of the FASB’s Emerging Issues Task Force and the International Financial Reporting Committee, and lessons learned from leading accounting practitioners.
Topics and Contents
Preface
About the Authors
Part I: FASB Statement No. 141
Introduction: Paragraphs 1 To 2
Standards of Financial Accounting and Reporting
Accounting for Assets Acquisitions: General Concepts
Standards of Accounting for Business Combinations
Scope
Method of Accounting
Application of the Purchase Method
Identifying the Acquiring Entity
Determining the Cost of the Acquired Entity
Costs of the Business Combination
Contingent Consideration
Allocating the Cost of an Acquired Entity To Assets Acquired and Liabilities Assumed
Assets Acquired and Liabilities Assumed, Except Goodwill
Excess of Cost Over the Fair Value of Acquired Net Assets (Goodwill)
Excess of Fair Value of Acquired Net Assets Over Costs
Accounting for Goodwill and Other Intangible Assets
Date of Acquisition
Documentation at Date of Acquisition
Disclosures in the Financial Statements
Disclosures in Interim Financial Information
Effective Date and Transition
Part II: FASB Statement No. 142
Introduction: Paragraphs 1 To 3
Standards of Fianncial Accounting and Reporting
Scope
Initial Recognition and Measurement of Intangible Assets
Internally Developed Intangible Assets
Accounting for Intangible Assets
Determining the Useful Life of an Intangible Asset
Intangible Assets Subject To Amortization
Recognition and Measurement of an Impairment Loss
Intangible Assets Not Subject To Amortization
Recognition and Measurement of an Impairment Loss
Accounting for Goodwill
Recognition and Measurement of an Impairment Loss
Fair Value Measurements
When To Test Goodwill for Impairment
Reporting Unit
Assigning Acquired Assets and Assumed Liabilities To Reporting Units
Assigning Goodwill To Reporting Units
Reorganization of Reporting Structure
Goodwill Impairment Testing By Subsidiary
Goodwill Impairment Testing When a Noncontrolling Interest Exists
Disposal of All or a Portion of a Reporting Unit
Equity Method Investments
Deferred Income Taxes
Financial Statement Presentation
Intangible Assets
Goodwill
Disclosures
Effective Date and Transition
Goodwill and Intangible Assets Acquired After June 30, 2001
Previously Recognized Intangible Assets
Previously Recognized Goodwill
Equity Method Goodwill
Transitional Disclosures
Part III: International Financial Reporting Standard 3
Objective
Scope
Identifying a Business Combination
Business Combinations Involving Entities Under Common Control
Method of Accounting
Application of the Purchase Method
Identifying the Acquirer
Cost of a Business Combination
Allocating the Cost of a Business Combination to the Assets Acquired and Liabilities and Contingent Liabilities Assumed
Initial Accounting Determined Provisionally
Disclosure
Transitional Provisions and Effective Date
Previously Recognized Goodwill
Previously Recognized Negative Goodwill
Previously Recognized Intangible Assets
Equity Accounted Investments
Limited Retrospective Application
Withdrawal of Other Pronouncements
Part IV: International Accounting Standard 38
Objective
Scope
Definitions
Intangible Assets
Identifiability
Control
Future Economic Benefits
Recognition and Measurement
Separate Acquisition
Acquisition as Part of a Business Combination
Acquisition by Way of a Government Grant
Exchanges of Assets
Internally Generated Goodwill
Internally Generated Intangible Assets
Recognition of an Expense
Past Expenses Not To Be Recognized as an Asset
Measurement After Recognition
Cost Model
Revaluation Model
Useful Life
Intangible Assets With Finite Useful Lives
Amortization Period and Amortization Method
Residual Value
Review of Amortization Period And
Amortization Method
Intangible Assets With Indefinite Useful Lives
Review of Useful Life Assessment
Recoverability of the Carrying Amount—Impairment Losses
Retirements and Disposals
Disclosure
General
Intangible Assets Measured After Recognition
Using the Revaluation Model
Research and Development Expenditure
Other Information
Transitional Provisions and Effective Date
Exchanges of Similar Assets
Early Application
Withdrawal of IAS 38 (Issued 1998)
Part V: Future Expectations and Developments
Business Combinations: Recent Developments
Part VI: Appendices
Appendix I: Acronyms List
Appendix II: Glossary
Appendix III: Index of Accounting Literature Cited