Accounting for Mergers & Acquisitions

Published 29 Nov 2007
Reference 5487
Industry Accounting
Region Global
Summary

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.

Teaching objectives

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.

Keywords
  • RD1107
  • AR2007
  • AR0708
  • Mergers
  • Consolidation
  • Minority Stake
  • Goodwill
  • Acquisitions
  • Accounting
  • Brands
  • Intangibles