Corporate Accounting and Reporting: Acquisition Analysis and Valuation Entries

Running head: CORPORATE ACCOUNTING AND REPORTING
CORPORATE ACCOUNTING AND REPORTING

Running head: CORPORATE ACCOUNTING AND REPORTING
Contents
Acquisition Analysis.................................................................................................... 3
Entries for the analysis of Acquisition...............................................................................3
Business Combination valuation entries............................................................................ 4
Entry for Non-Controlling Interest...................................................................................5
Worksheet entries........................................................................................................ 5
Changes in step 1 to 4.................................................................................................. 5

Running head: CORPORATE ACCOUNTING AND REPORTING
Acquisition Analysis
At 1st June 2019
Net fair value of the identifiable
assets and liabilities of Davis Limited
Equity $ 7,76,000.00
General reserve $ 3,33,000.00
Asset Revaluation Surplus $ 2,66,000.00
$ 13,75,000.00
Inventories $ 1,86,200.00
Land $ 3,72,400.00
Furniture $ 4,34,700.00
Total Net identifiable assets $ 23,68,300.00
Total Consideration Transferred $ 22,18,000.00
$ 2,13,147.00
Goodwill $ 62,847.00
Particulars Inventories Land Furniture
Fair value 599000 1197000 1397000
Carrying amount 333000 665000 776000
Net fair value 266000 532000 621000
Entries for the analysis of Acquisition
Acquisition
Analysis
Pre Acquisition Entries
1st July 2019 General reserve (1/7/19)
D
r.
$
13,34,151.00
Share Capital
D
r.
$
7,06,160.00
Asset Revaluation surplus
D
r.
$
2,42,060.00
BCVR
$ -
11,524.00
To gain on bargain purchase
$
52,847.00
To shares in Davis Limited
$
22,18,000.00
(for consideration given to Davis
limited)