Merger accounting: Difference between revisions
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The difference that arises on consolidation does not represent goodwill, but is instead added to (or deducted from) reserves. | The difference that arises on consolidation does not represent goodwill, but is instead added to (or deducted from) reserves. | ||
The difference in reserves is generally reported separately and labelled "merger reserve". | |||
Revision as of 10:16, 14 February 2023
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.
The difference in reserves is generally reported separately and labelled "merger reserve".
Relevant accounting standards include IFRS 3, and Section 9 and Section 19 of FRS 102.
