We are in the preliminary phase of the
purchase accounting process, including obtaining third-party valuations of certain tangible and intangible assets acquired.
Accounting for Income Taxes: Impact of FASB and IASB Domestic and Foreign ESOs, and
Purchase AccountingMy team's job is to figure out how to integrate acquisitions into Microsoft and ensure we properly book the
purchase accounting.
The three engineered materials plant closings will be included as part of the acquisition
purchase accounting related to the consolidation of Geon and M.
Ira Zuckerman, an equity analyst with Nutmeg Securities, agreed, saying buyers will simply adjust their price to absorb the impact of
purchase accounting.
AOL and Time Warner executives say
purchase accounting will enable the new company, AOL Time Warner, to dispose of unproductive assets and conduct stock buybacks.
The banking industry is very concerned about the loss of poolings because
purchase accounting would provide misleading information about prospective net cash inflows for certain types of business combinations," ABA Accounting Committee Chair Mike Hughey said.
Burbank-based Disney also insisted that the
purchase accounting principles for the Capital Cities/ABC deal were ``applied as they exist today, not as others might wish them to be.
In the case of
purchase accounting, the valuation group must allocate a finite amount, the purchase price, to the assets.
Statement 141 on Business Combinations: 1) requires the use of
purchase accounting for all business combinations initiated after June 30, 2001; and 2) provides new criteria for determining when intangible assets should be recognized separately from goodwill.
Use of the
purchase accounting method will also bring the United States in step with other countries, because widespread use of the pooling-of-interests method is a U.
