Acquisition accounting
From ACT Wiki
Financial reporting.
Acquisition accounting is the generally accepted method of financial accounting for subsidiaries.
Acquisition accounting regards the combination of the holding company and the subsidiary as being the acquisition by one company of another. The difference between the fair value of the consideration given and the fair values of the entity acquired is accounted for as goodwill.
Also known as full consolidation.
Mergers and acquisitions are addressed in Section 9 and Section 19 of FRS 102 for reporting periods starting on or after 1 January 2015.
