《財務會計與報告》知識點：Acquisition method

　　Acquisition method

　　Acquisition values use fair value.

　　FV of consideration given/received，which is the more clearly evident. 參F10-3

　　Acquisition with cash

　　Dr.Investment in subsidiary

　　Cr.Cash

　　Acquisition with parent common stock（use FV at date transaction closes）

　　Dr.Investment in subsidiary

　　Cr.C/S（at par）

　　Cr. A.P.I.C（FV-par）

　　Acquisition Method Features

　　100% of the net assets of acquired entity are recorded at fair value.

　　Unallocated PPA（Purchase Price Allocation）recorded as goodwill

　　The subsidiary‘s entire equity is eliminated.

　　Pass Key

　　Fair Value=Acquisition Price=Investment in subsidiary

　　CAR IN BIG F3-24

　　C/S，APIC，R.E of subsidiary are Eliminated.

　　Investment in subsidiary is eliminated

　　Noncontrolling interest（NCI）is created

　　B/S of subsidiary is adjusted to Fair value

　　Identifiable intangible assets of the subsidiary are recorded at their fair value.F3-32

　　Goodwill/Gain is squeezed.

　　Consolidating W/P eliminating journal entry

　　Dr.C/S

　　Dr.A.P.I.C

　　Dr.R.E

　　Cr.Investment in subsidiary

　　Cr.Noncontrolling interest

　　Dr.B/S adjustments to FV

　　Dr.Identifiable intangible assets to FV

　　Dr.Goodwill

　　Subsidiaries fair value（Pass Key F3-25）

　　FV of subsidiary = Acquisition cost + Noncontrolling interest

　　FV of subsidiary=（NBV + B/S FV adjustment）+ Identifiable IA FV + Goodwill = FV of B/S + identifiable IA FV + Goodwill

　　Acquisition cost + noncontrolling interest = FV of B/S + Identifiable IA FV + Goodwill

　　Subsidiaries fair value（Pass Key F3-25）

　　企業被并重評值，總額要由對價定。

　　評估價值四大塊，賬面價值做基礎。

　　賬面價值不公允，差額調入合并表。

　　無形資產如可辯，公允價值表中增。

　　以上三塊相加后，仍與總額有差異。

　　差異從來不可辯，記入商譽列表中。

　　Subsidiaries fair value （Pass Key F3-25）

　　企業價值四大塊，至終濃縮為權益。

　　我是控股大股東，資產負債要全記。

　　其他股東分額小，但是權益還要占。

　　防止誤導投資者，非控股東權益出。

　　老板緊催交合并，大汽車中列表做。

　　Subsidiaries fair value （Pass Key F3-25）

　　大汽車里做合并，個別報表按列排。

　　子方先把權益清，母方再把投資消。（CAR， I）

　　合并新增四項目，非控股東分凈值。（N）

　　賬面金額調公允，賬外可辯無形增。（B，I）

　　商譽總是被擠出，各列相加合并成。（G）

　　“在大汽車里”CAR IN BIG做合并的注意事項

　　CAR=Assets-Liabilities=Equity=Net book value

　　Compute the difference between book value and fair value as of the acquisition date

　　R.E.Squeeze back to acquisition date

　　Investment in subsidiary

　　Capitalize cost

　　Original cost：FV of the consideration given

　　Bond issue cost

　　Expensed cost

　　Out-of-pocket cost. legal fee，finder‘s fee

　　Indirect costs

　　Reverse with A.P.I.C

　　Stock registration and issuance costs.

　　考點：

　　Acquisition related costs must be EXPENSED.

　　Legal fee for acquisition must be expensed.

　　Noncontrolling Interest（NCI）

　　Only exist in consolidated F/S-B/S-Equity（5+1的1）

　　If not 100% owned，there must exist NCI in B/S

　　Reported at fair valu

　　NCI在B/S上的核算（參Appendix I）

　　BASE of NCI

　　B = FV of sub. X Noncontrolling interest %

　　A = NCI share of sub. Net income

　　S = Dividend declared to NCI

　　E = B + A -S

　　‘Full goodwill method’ NCI Vs. ‘Partial goodwill method’ NCI（F3-31）在Goodwill中列示

　　考點：NCI可否為負值？

　　答案：可以是負值。如果子公司的凈權益已為負值，在合并報表上，需要將虧損分配給NCI.

　　NCI對于I/S的影響（參Appendix I）

　　增加Net income attributable to noncontrolling interest和Net income attributable to XXX

　　Net income attributable to noncontrolling interest = Subsidiary‘s net income X noncontrolling interest %

　　實務擴展，復雜資本結構下的合并損益表下半段：

　　Net Income

　　Less：Net income attributable to noncontrolling interest

　　Net income attributable to ABC company

　　Undistributed earnings allocated to preferred shareholder

　　Net income attributable to C/S of ABC company

　　EPS（Basic & Diluted）and Weighted average shares

　　NCI對于C/I的影響（參Appendix I）

　　增加Comprehensive income attributable to noncontrolling interest和Comprehensive income attributable to XXX

　　NCI對于Statement of changes in Equity的影響

　　增加 了equity attributable to the parent and equity attributable to the noncontrolling interest.

　　參Appendix I

　　實務擴展。中國在美上市公司的change in equity通常比書上的例子多一列內容Statutory reserve. 這是因為VIE實體，多為中國公司法人，根據中國公司法，需要計提10%法定盈余公積，從而導致此列的增加。

　　NCI對于Statement of changes in Equity的影響

　　增加 了equity attributable to the parent and equity attributable to the noncontrolling interest.

　　參Appendix I

　　實務擴展。中國在美上市公司的change in equity通常比書上的例子多一列內容Statutory reserve. 這是因為VIE實體，多為中國公司法人，根據中國公司法，需要計提10%法定盈余公積，從而導致此列的增加。

　　“CAR IN BIG”并的注意事項BIG

　　B/S adjustment of the subsidiary‘s records from book value to fair value.

　　Identifiable intangible assets related to the acquisition of the subsidiary are recorded at fair value. E.g. customer relationship，contract backlog，Non-compete agreement，Operating license，In Process R&D，etc.（F3-32）

　　考點：In Process Research and Development

　　對于母公司而言，被并企業的IPRD符合資產的定義（買該企業，就是因為看中該企業的R&D很可能在將來帶來經濟利益流入）。

　　先資本化掛在賬上，待研發項目結果明確后，再確定處理辦法。

　　并購后的后續R&D支出，繼續費用化。

　　如研發項目成功，則按受益期攤銷入R&D

　　如研發項目失敗，立刻write off入R&D

　　Goodwill價值的確定

　　Acquisition cost + noncontrolling interest = FV of B/S + Identifiable IA FV + Goodwill 解方程

　　GW=（Acquisition cost +noncontrolling interest）-（FV of B/S + Identifiable IA FV）

　　Goodwill的常見構成（F3-33）

　　Assembled workforce，Distribution Channel，Know-how，Government relations，Technical Expertise，etc.

　　Full Goodwill Vs. Partial Goodwill

　　In GAAP，only Full Goodwill method

　　In IFRS，prefer Partial Goodwill method，but can elect Full Goodwill method on a transaction-by-transaction basis

　　Full GW=（Acquisition cost +noncontrolling interest）-（FV of B/S + Identifiable IA FV）

　　Partial GW =（Acquisition cost）-（FV of B/S + Identifiable IA FV）X % owned =（Acquisition cost+NCI）X % owned -（FV of B/S + Identifiable IA FV）X % owned =[（Acquisition cost +noncontrolling interest）-（FV of B/S + Identifiable IA FV）] X % owned = Full GW X % owned.

　　Partial GW = Full GW X % owned by control investor

　　Full GW=（Acquisition cost +noncontrolling interest）-（FV of B/S + Identifiable IA FV）

　　Full GW method NCI=Acquisition cost X NCI %/Controlling interest %

　　Partial GW =Full GW X % owned

　　Partial GW NCI=（FV of B/S + Identifiable IA FV） X NCI % = Full GW method NCI – （Full GW – Partial GW）

　　由F-33/34命題可見，Full Goodwill Method同時加大了Consolidation report中的Goodwill和NCI.請牢記GAAP，采用Full Goodwill Method

　　Concept Exercise （F3-36～40）

　　大汽車里做合并，先把基礎數據調。

　　RIn要調回并購時，股價要看完成日

　　CAR與BIG在借方，IN在貸方列方程。

　　Goodwill是未知，方程求解算出來。

　　大汽車里調整后，合并新增IaG ，

　　別忘同時調BV，Fair Value總正確。

　　核心：CAR + BIG = IN

　　（1000K+400K+300K）+（200K+100K+G）=（2500K+0）

　　G=500K

　　Consolidated Statement of Cash Flows

　　并購當期的注意事項

　　并購現金凈額，記在Investing activity cash flow

　　當期合并資產負債變動＝合并期末資產負債-母公司期初資產負債-并購日子公司資產負債。

　　并購后的注意事項

　　使用合并凈利潤

　　子公司支付給母公司的股利，應抵銷。

　　增持子公司股份現金支出，記入“投資活動”

　　Step Acquisition – Consolidation and Deconsolidation

　　From non-control to control（40%到60%）

　　Remeasure previous interest

　　Adjustment recognized in I/S

　　Remeasure adjust = Addition consideration/Addition % X old %

　　Dr. Investment in subsidiary

　　Cr. Gain

　　From control to more/less control（70%到80%或到60%）

　　Equity transaction

　　Adjust A.P.I.C

　　No Gain/Loss recognized on I/S

　　From control to non-control（60%到40%）

　　Disposal part，recognize gain/loss

　　Remain part，remeasure to fair value

　　Adjust I/S

　　Acquisition Method Disclosures

　　Business combination occurred in current period or from B.S date to F/S issued date.

　　Acquiree‘s name，date，%，reason，description etc.

　　Consolidation Disclosures

　　Disclose the consolidation policy being followed.

　　Acquisition Method Summary（F3-45）重要