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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CORPORATE TAKEOVER DECISION MAKING AND EFFECTS ON CONSOLIDATED
ACCOUNTING
Executive summary:
The report elucidates the understanding and knowledge of the difference accounting
concepts by focusing on the facts retrieved from the given case study. The report is
divided into three sections with each of them focusing on the difference concepts
involve in the acquisition of one firm by another. In the given case study, JKY limited
is proposing to acquire a small company FAB limited either by way of direct
purchasing or by acquiring shares and exercising significant influence. One of the
sections presents the differences between tge equity and consolidation accounting
with other section emphasizing on the treatment of the intra group transactions
between the parent and subsidiary. The later section of the report depicts an
analysis on the disclosure requiring of non controlling interest and the changes hat is
essential when preparing the consolidated financial statement.

CORPORATE TAKEOVER DECISION MAKING AND EFFECTS ON CONSOLIDATED
ACCOUNTING
Table of Contents
Introduction:..................................................................................................................4
Answer to Part A:..........................................................................................................4
Identifying the key differences between equity accounting and consolidated
accounting methodology:..............................................................................................4
Answer to Part B:..........................................................................................................5
Explaining the treatment of intra group transaction by discussing the key principles:.5
Answer to Part C:..........................................................................................................6
Identifying the changes for ensuring the correct recording of the consolidated
financial statements:.....................................................................................................6
Determining the impact of changes on the disclosure requirement in the annual
report of company:........................................................................................................7
Discussing the effect of the disclosure requirement non controlling interest as a
separate item in the consolidation process:.................................................................8
Conclusion:...................................................................................................................8
References list:.............................................................................................................9