Corporate Takeover Decision Making and Effects on Consolidated Accounting

Running head: CORPORATE TAKEOVER DECISION MAKING AND EFFECTS ON
CONSOLIDATED ACCOUNTING
Corporate takeover decision making and the effects on consolidated
accounting
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Author Note

CORPORATE TAKEOVER DECISION MAKING AND EFFECTS ON CONSOLIDATED
ACCOUNTING
Executive summary:
The report is prepared for conducting an independent research on the facts such as
business combination, acquisition method, non controlling interest and intra group
transactions by making a detailed analysis of the relevant accounting standards.
Analysis of the concepts has been done by referring to the given case study where
one firm is proposing to take over other firm by way of direct purchasing or by
acquiring shares and exercising significant influence. The report is discussed into
three different sections. In first section, the differences between the methodology of
consolidation and equity accounting have been depicted and the second section
concentrates on evaluating the treatment of intra group transactions between parent
entity and subsidiary. The third section conducts an analysis into the disclosure
requirements on non controlling interest in the event of preparing consolidated
financial statements.

CORPORATE TAKEOVER DECISION MAKING AND EFFECTS ON CONSOLIDATED
ACCOUNTING
Table of Contents
Introduction:..................................................................................................................3
Answer to Part A:..........................................................................................................3
Outlining the differences between the methods of equity accounting and
consolidated accounting:..............................................................................................3
Answer to Part B:..........................................................................................................3
Evaluating the treatment of intra group transaction accounting and its impact on non
controlling interest:........................................................................................................3
Answer to Part C:..........................................................................................................3
Identifying the changes for correctly stating the consolidated financial statements:. . .3
Evaluating the affect of required changes on the disclosure requirements on the
annual report:................................................................................................................3
Discussing the effect of the non controlling interest disclosure requirement as a
separate item in the consolidation process:.................................................................3
Conclusion:...................................................................................................................4
References list:.............................................................................................................4