THE CORPORATE ACCOUNTING

CORPORATE ACCOUNTING 1
CORPORATE ACCOUNTING

CORPORATE ACCOUNTING
Table of Contents
Acquisition Analysis........................................................................................................................3
Combination Entries........................................................................................................................4
Non-Controlling Entries..................................................................................................................5
Worksheet Entries............................................................................................................................6
Full Goodwill Method.....................................................................................................................7
References........................................................................................................................................8

CORPORATE ACCOUNTING
Corporate accounting is a special branch of accounting that deals with accounting procedures of
companies, preparation of their final accounts and the overall cash flow statement,
amalgamation, absorption and preparation of the consolidated statements. In this report a five
step treatment is undertaken to understand the acquisition process of Davis Limited by Ethan
Limited for 92% of the shares (Albersmann, 2017).
Acquisition Analysis
At 1st July 2019
Particulars Fair value - Carrying Value Income tax liability
Equipment (1372000-762000) $ 610,000.00
$
427,000.00
Land (1175000-653000) $ 522,000.00
$
365,400.00
Inventory (587000-326000) $ 261,000.00
$
182,700.00
Fittings (34100-32050)
$
2,050.00
$
1,435.00
Net fair value of the identifiable
assets and liabilities of Davis
Limited
Share Capital
$
762,000.00
Asset Revaluation Surplus
$
326,000.00
Retained earnings
$
261,000.00
$
1,349,000.00
Equipment
$
427,000.00
Land
$
365,400.00
Fittings
$
1,435.00
Inventory
$
182,700.00
Total $