Problems in merger and acquisition accounting

Article Abstract:

Advice related to accounting for mergers and acquisitions is given in 18 basic areas, including: computing merger reserves, methods of disclosing investment costs, various uses for merger reserves, reporting comparative results, consolidating financial figures, preparation of funds statements, reporting required changes in accounting methods, imputing interest on purchase prices paid for corporations, calculation of shareholder dividends, enforcing a single year-end date for all reporting entities, calculating fair values for the shares of the new enterprise, re-valuation of assets and investments, assigning combination dates when two companies merge, reporting unfinished transactions at year end, accounting for pre-combination profits, and sales of subsidiaries that had been included in the merger. The accounting and auditing standards referred to throughout are British in origin.

Corporate reorganizations

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Auditor's portable library

Article Abstract:

The UK's Arthur Andersen & Co is pilot testing a combination of portable PC and CD-ROM-based accounting and auditing documentation to improve the capability of auditors to deliver effective services to customer sites. The CD-ROM contains any technical and professional reference material the auditor may require, including: Andersen's internal manuals and practice aids, all rules and publications from professional accounting organizations, the Companies Act of 1985, and US and Spanish equivalents. Software for accessing the CD-ROM data includes such features as browsing, searching, cross-referencing, a notepad, and a download facility for transferring data to a word processor. The system speeds up and improves the accuracy and comprehensiveness of searches, while letting the auditor concentrate on the client's problem.

Accounting, auditing, & bookkeeping, Management, Usage, Auditing, CD-ROM, CD-ROM disks, Arthur Andersen & Co. (New York, New York)

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International Accounting Standard IAS 22 (Revised 1998): Business Combinations

Article Abstract:

The International Accounting Standards Committee (IASC) has once again revised IAS No 22 'Business Combinations.' The standard was first approved in Nov 1983 as 'Accounting for Business Combinations,' was revised in Dec 1993 as part of the project on Comparability and Improvements of Financial Statements, and underwent another revision in Oct 1996 to achieve greater consistency with IAS 12, 'Income Taxes.' The 1998 revision was undertaken to align IAS 22 with IAS 36, 'Impairment of Assets'; IAS 37, 'Provisions, Contingent Liabilities and Contingent Assets;' and IAS 38, 'Intangible Assets.' The new standard will take effect for annual financial statements for periods starting on or after Jul 1, 1999, but earlier application is recommended.

Acquisitions Analysis-Accounting, International Accounting Standards Board

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