The new acquisition of Macquarie Generation

Running head: CORPORATE ACCOUNTING
Corporate Accounting
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1CORPORATE ACCOUNTING
Table of Contents
The new acquisition of Macquarie Generation..............................................................2
Background of MG........................................................................................................3
Reason of acquisition of MG.........................................................................................3
Implication of acquisition of MG...................................................................................4
Accounting Treatment for Acquisition of MacGen:.......................................................5
Conclusion:....................................................................................................................5

2CORPORATE ACCOUNTING
The new acquisition of Macquarie Generation
On 20 August 2014, AGL executed a Sale and Purchase Agreement with the New
South Wales Government to acquire the MacquarieGeneration assets for consideration
of $1,505 million including stamp duty.
The acquisition was completed on 2 September 2014, on which date AGL obtained
control of the assets. The final purchase considerationcomprised cash of $1,401
million including stamp duty of $93 million. The purchase price also included
working capital and other settlement adjustments of $104 million.
Source: AGL Energy Limited Annual Report 2015 - Notes to the Consolidated
Financial Statements, P85