F3 NoteCards- Deck #2 Flashcards Preview

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Flashcards in F3 NoteCards- Deck #2 Deck (13):
1

Acquisition Method: record acquisition at:

FV at date transaction closes

2

Direct Costs associated with an acquisition are:

Expensed

3

Stock Registration and Issuance Costs with an acquisition are:

A direct reduction of the value of the stock issued

4

Indirect Costs associated with an acquisition are:

Expensed

5

Bond Issue Costs associated with an acquisition are:

Capitalized and amortized

6

To Calculate NCI (GAAP): (non-controlling interest)

FV of Company X % Ownership = Acquisition Cost
Then, take FV of Company and multiply by % not owned

7

To Calculate Goodwill (IFRS)- Partial Goodwill Method

Take goodwill and multiply by % owned

8

Best Way to Remember Acquisition Method

CAR IN BIG

9

To Calculate Intercompany Sales

Separate revenues less consolidated revenues = inter company revenues

10

To Calculate Payables Due for Intercompany Sales

Separate AR balances less consolidated AR balance = payables due for intercompany sales

11

To Calculate Unrealized Interco Profit Eliminated

Separate inventory balances less consolidated inventory balance = unrealized interco profit eliminated

12

Intercompany Transactions: what to do with them

Eliminate 100% of them, since they lack the criteria of being "arm's length"

13

If you do not consolidate, do you eliminate intercompany transactions?

No. Not consolidated = not eliminated