The New Acquisition of MRL: Financial and Strategic Analysis

This report provides a comprehensive analysis of the MRL acquisition, examining the reasons behind the acquisition, the purchase considerations involved, and the implications on financial statements. It details the strategic motives, such as generating profit and securing long-life natural gas resources, and outlines the purchase consideration, including goodwill arising from the cost premium. The report also explains the acquisition method of accounting, focusing on changes in ownership interest and the consolidation of financial statements. It highlights the impact on financial statements, emphasizing the determination of a company's ability to pay off its debts. The report is supported by references to academic journals and books, offering a detailed understanding of the acquisition's financial and strategic aspects.

The New Acquisition
Of MRL

Reason of consideration
The company MRL has been acquired many assets and goodwill in 2017 and 2018 due to
reduce losses. The company has been acquired these things such as intangible assets separately
to recognise at cost. In 2017 Acquired by Walter Wright industries in 1982 in order to generate
much more profit and acquisition apply as strategy in order to projects that target life of mine
services. Through acquisition get amount of subsidiary 121 and non controlling interest 180 (Li
and et.al, 2016).
In 2018, MRL is completed the acquisition of Empire oil and gas Pty Ltd due on its perth
Basin assets on 8 December 2017. The particular company prepare their business strategy in
order to get secure long life and cut out amount of natural gas resources in order to they get
energy power as per requirements of mining and mining service businesses. To continue get
progress exploration permit to 389 approximately the Red gully production. The main reason to
acquire different types of companies and mines to get success for long time and increase
productivity of the company in effective manner.
Purchase Consideration
As a purchase consideration company has been received different types of projects and
get success in effective manner. Due to acquisition arising goodwill of MRL Pty Ltd due to
combination of cost premium. It further get benefit of expected synergies and cost savings are
not recognised separately from goodwill. The fair value of previously held as 25% equity interest
in MRT PTY Ltd. It has been derived from consideration moved. A loss of $1389000 has been
identify in profit or loss as a result to remeasuring to fair value of equity interest (He and
Manela, 2016) ..
Acquisition method of accounting:
In accounting concept, the methods by which an acquirer buys share or whole company
and used general acceptable accounting principle then they record the following events by using
acquisition methods. In the following company the acquisition method accounted is that there is
a change in the ownership interest and there is no loss of control for any equity transaction. The
actual difference between the circumstance transferred and the present value of the share of non
controlling interest captured directly by the parent company. Thus the company consider the fair
value of the consideration obtained by the any fair value of the investments to retain any gain or
loss in profit and loss statements.
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Implications of the financial statements
In business context when, a company use to acquire other company then the financial
statements are being consolidated into single accounts. This help to draw the key finding for
companies and make valuable suggestion for improvement and increasing the proficiency and
profitability. The consolidated financial statements compound the each liabilities and assets of
each of the company as at 30 June 2018 and the result of all adjuvant ending year. Therefore
there are various reasonable grounds that help to determine that company will be enable to pay
off its actual debts at the time when they become due and payable (Vaccari and et.al, 2016).
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REFERENCES
Books And Journals
Li, J. and et.al, 2016. A comparative study of multigranulation rough sets and concept lattices via
rule acquisition. Knowledge-Based Systems. 91. pp.152-164.
He, Z. and Manela, A., 2016. Information acquisition in rumor‐based bank runs. The Journal of
Finance. 71(3). pp.1113-1158.
Vaccari, M. and et.al, 2016. Adjuvant-dependent innate and adaptive immune signatures of risk
of SIV mac251 acquisition. Nature medicine. 22(7). p.762.
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