Relevant publications on business combinations
How revised M&A accounting standards are impacting deals
Changes to M&A accounting standards enacted several years ago (ASC 805, formerly SFAS 141R) have caused uncertainty for companies in knowing how transactions will impact their financial statements. How have companies changed the way that they approach and plan for deals as a result of the revised accounting rules?
Mergers & acquisitions: A snapshot March 2010
The Consolidation Standard is effective as of January 1, 2010 for calendar year-end companies and the impact will soon be reported in the first quarter reporting cycle. As a result of applying the new guidance, certain entities may need to be consolidated while other entities may need to be deconsolidated. Determining who consolidates is just the beginning. There are several other accounting considerations that could follow—such as acquisition accounting for newly consolidated entities, potential changes to impairment tests, and measuring the impact of deconsolidation of an entity under the M&A Standards. This volume of Mergers & Acquisitions—A snapshot
discusses accounting considerations that companies may face related to the M&A accounting standards upon adoption of the consolidation standard.
A global guide to accounting for business combinations and non-controlling interests
This PwC guide addresses the new accounting for business combinations and non-controlling interests presented in consolidated financial statements under US generally accepted accounting principles (GAAP) and International Financial Reporting Standards (IFRS), and provides perspectives on the application of the underlying principles. The publication clarifies the fundamental principles of these standards and highlights areas that are expected to present implementation challenges for companies that prepare financial statements under US GAAP or IFRS.
Business combinations and noncontrolling interests: Q1 - Q3 2009 financial statement disclosure analysis
This document summarizes observations from an analysis of public company transactions that closed during the first three quarters of 2009. The primary objective is to provide data, analysis and insights on how certain of the financial statement disclosure requirements related to business combinations and noncontrolling interests have been applied in practice.
Mergers & acquisitions: A snapshot November 2009
In many M&A transactions, a buyer may acquire assets it does not intend to use. Prior to the M&A standards, buyers generally would assign little or no value to assets that are not intended to be used when accounting for an M&A transaction. Now, such assets are required to be recognized at fair value from a market participant perspective, even if that perspective differs from that of the actual buyer.
One common type of asset that a buyer does not intend to actively use that is receiving considerable attention is called a "defensive asset." This volume of Mergers & acquisitions: A snapshot
, focuses on some of the issues companies may face when initially recognizing, measuring and subsequently accounting for defensive assets.
Challenges and opportunities in the wake of the financial crisis: July 2009
The current financial crisis has driven significant consolidation in the banking industry creating unique buying opportunities and risks. However, the current crisis differs from previous ones requiring a more sophisticated approach to bank M&A. This PwC publication discusses how to plan and execute a successful integration strategy guided by a clear view of the desired long term business model. In addition, a framework for response that identifies integration best practices, common pitfalls, the key value drivers and a phased approach companies should consider during the integration period is included.
10Minutes: New scorecard: Sizing up the changes
Accounting standards adopted in late 2007 introduced pervasive changes to how companies track and report M&A. Two deserve particular attention: expensing transaction and restructuring costs, and the broader use of fair value concepts.
What you need to know about accounting standards affecting M&A
The US standards, FAS 141R, business combinations, and FAS 160, non-controlling interests in consolidated financial statements, not only put a greater focus on financial reporting as it moves toward fair value; but also call for heightened diligence and valuation. Although these changes will not be effective until 2009 and early adoption is prohibited, dealmakers should be aware of how these changes will affect their M&A process and their ability to get the deal done.
Fair value accounting: Tax considerations
This paper highlights the significance of the movement toward fair value accounting to those responsible for company tax matters. It addresses the trend from the perspective of each of several diverse areas in which tax matters intersect with fair value measurement.
Business combinations and consolidations: The accounting standards
This publication provides a condensed summary of the significant provisions and implications of two accounting standards adopted in the fourth quarter of 2007 on the accounting for business combinations and non-controlling interests (minority interests) in consolidated financial statements (FAS 141R and FAS 160).