Merger accounting and Private placement: Difference between pages

Revision as of 13:30, 1 October 2013

This is a form of securities issuance that has no exact definition.

It usually refers to an issue that has been designed for a specific set of investor needs at a particular time.

As such it is not expected to be traded in the secondary market and is not a 'public' issue.

It is not normally expected to be listed on an exchange.

A wide variety of securities under various names are private placements. In Germany, Schuldschein are a form of private placements, for example.

@@ Line 1: / Line 1: @@
-Merger accounting regards two or more parties as combining their interests on an equal footing.
+This is a form of securities issuance that has no exact definition.
-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'.
+It usually refers to an issue that has been designed for a specific set of investor needs at a particular time.
-Under UK domestic [[GAAP]] merger accounting is required - but under strictly limited circumstances - under FRS 6 'Acquisitions and Mergers'.
+As such it is not expected to be traded in the secondary market and is not a 'public' issue.
+It is not normally expected to be listed on an exchange.
+A wide variety of securities under various names are private placements. In Germany, [[Schuldschein]] are a form of private placements, for example.
+== ACT Website links ==
+[http://www.treasurers.org/blogs/ceo/201307 Colin Tyler's Blog 5 July 2013]
+[http://www.treasurers.org/node/8624 Developing a UK Private Placement market – report of the PP15+ working group]
 == See also ==
-* [[Acquisition accounting]]
+* [[Issue]]
-* [[FRS  6]]
+* [[Placement]]
-* [[IFRS  3]]
+* [[Rule 144A]]
-* [[Merger]]
+* [[Secondary market]]
-* [[Merger reserve]]
+* [[Security]]