Accounting for Mergers & Acquisitions

The note addresses accounting for mergers and acquisitions by using the example of P and G's acquisition of Gillette. It explains the accounting journal entries that are recorded in an M and A transaction and the process of calculating goodwill and subsequent impairment.

The note explains the accounting journal entries that are recorded in an M and A transaction, in particular the recognition and measurement of identifiable assets including liabilities and PP and E, intangible assets, in-process R and D, restructuring provisions, contingent liabilities and the process of calculating goodwill and subsequent impairment.