Merger accounting: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson m (Spacing 22/8/13) |
imported>Doug Williamson m (Link with GAAP page.) |
||
| Line 5: | Line 5: | ||
Merger accounting is not allowed under the relevant international accounting standard IFRS 3 'Business combinations'. | Merger accounting is not allowed under the relevant international accounting standard IFRS 3 'Business combinations'. | ||
Under UK domestic GAAP merger accounting is required - but under strictly limited circumstances - under FRS 6 'Acquisitions and Mergers'. | Under UK domestic [[GAAP]] merger accounting is required - but under strictly limited circumstances - under FRS 6 'Acquisitions and Mergers'. | ||
Revision as of 13:25, 22 July 2014
Merger accounting regards two or more parties as combining their interests on an equal footing.
The difference that arises on consolidation does not represent goodwill, but is instead added to (or deducted from) reserves.
Merger accounting is not allowed under the relevant international accounting standard IFRS 3 'Business combinations'.
Under UK domestic GAAP merger accounting is required - but under strictly limited circumstances - under FRS 6 'Acquisitions and Mergers'.
