Advanced Accounting, 5th Edition

ACCOUNTING FOR BUSINESS COMBINATIONS

LEARNING OBJECTIVES

Describe the major changes in the accounting for business combinations passed by the FASB in December 2007, and the reasons for those changes.

Describe the two major changes in the accounting for business combinations approved by the FASB in 2001, as well as the reasons for those changes.

Discuss the goodwill impairment test, including its frequency, the steps laid out in the new standard, and some of the implementation problems.

Explain how acquisition expenses are reported.

Describe the use of pro forma statements in business combinations.

Describe the valuation of assets, including goodwill, and liabilities acquired in a business combination accounted for by the acquisition method.

Explain how contingent consideration affects ...