Acquisition method
 

　　Acquisition values use fair value.

　　FV of consideration given/received，which is the more clearly evident. 參F10-3

　　Acquisition with cash

　　Dr.Investment in subsidiary

　　Cr.Cash

　　Acquisition with parent common stock（use FV at date transaction closes）

　　Dr.Investment in subsidiary

　　Cr.C/S（at par）

　　Cr. A.P.I.C（FV-par）

　　Acquisition Method Features

　　100% of the net assets of acquired entity are recorded at fair value.

　　Unallocated PPA（Purchase Price Allocation）recorded as goodwill

　　The subsidiary‘s entire equity is eliminated.

　　Pass Key

　　Fair Value=Acquisition Price=Investment in subsidiary

　　CAR IN BIG F3-24

　　C/S，APIC，R.E of subsidiary are Eliminated.

　　Investment in subsidiary is eliminated

　　Noncontrolling interest（NCI）is created

　　B/S of subsidiary is adjusted to Fair value

　　Identifiable intangible assets of the subsidiary are recorded at their fair value.F3-32

　　Goodwill/Gain is squeezed.

　　Consolidating W/P eliminating journal entry

　　Dr.C/S

　　Dr.A.P.I.C

　　Dr.R.E

　　Cr.Investment in subsidiary

　　Cr.Noncontrolling interest

　　Dr.B/S adjustments to FV

　　Dr.Identifiable intangible assets to FV

　　Dr.Goodwill

　　Subsidiaries fair value（Pass Key F3-25）

　　FV of subsidiary = Acquisition cost + Noncontrolling interest

　　FV of subsidiary=（NBV + B/S FV adjustment）+ Identifiable IA FV + Goodwill = FV of B/S + identifiable IA FV + Goodwill

　　Acquisition cost + noncontrolling interest = FV of B/S + Identifiable IA FV + Goodwill

　　Subsidiaries fair value（Pass Key F3-25）

　　企業(yè)被并重評(píng)值，總額要由對(duì)價(jià)定。

　　評(píng)估價(jià)值四大塊，賬面價(jià)值做基礎(chǔ)。

　　賬面價(jià)值不公允，差額調(diào)入合并表。

　　無(wú)形資產(chǎn)如可辯，公允價(jià)值表中增。

　　以上三塊相加后，仍與總額有差異。

　　差異從來(lái)不可辯，記入商譽(yù)列表中。

　　Subsidiaries fair value （Pass Key F3-25）

　　企業(yè)價(jià)值四大塊，最終濃縮為權(quán)益。

　　我是控股大股東，資產(chǎn)負(fù)債要全記。

　　其他股東分額小，但是權(quán)益還要占。

　　防止誤導(dǎo)投資者，非控股東權(quán)益出。

　　老板緊催交合并，大汽車中列表做。

　　Subsidiaries fair value （Pass Key F3-25）

　　大汽車?yán)镒龊喜ⅲ瑐€(gè)別報(bào)表按列排。

　　子方先把權(quán)益清，母方再把投資消。（CAR， I）

　　合并新增四項(xiàng)目，非控股東分凈值。（N）

　　賬面金額調(diào)公允，賬外可辯無(wú)形增。（B，I）

　　商譽(yù)總是被擠出，各列相加合并成。（G）

　　“在大汽車?yán)?rdquo;CAR IN BIG做合并的注意事項(xiàng)

　　CAR=Assets-Liabilities=Equity=Net book value

　　Compute the difference between book value and fair value as of the acquisition date

　　R.E.Squeeze back to acquisition date

　　Investment in subsidiary

　　Capitalize cost

　　Original cost：FV of the consideration given

　　Bond issue cost

　　Expensed cost

　　Out-of-pocket cost. legal fee，finder‘s fee

　　Indirect costs

　　Reverse with A.P.I.C

　　Stock registration and issuance costs.