1. Legal POV
1.1. Asset
1.1.1. Merger
1.1.2. Consolidation
1.2. Stock
1.2.1. Acquiree (parent)
1.2.2. Acquirer (subsidiary)
2. Also known as
2.1. Horizontal
2.2. Vertical
2.3. Conglomerate
3. Acquisition Method
3.1. Identify the acquirer
3.1.1. Guidance
3.1.1.1. Substance over form
3.1.1.2. Who is the initiator of the combination?
3.1.1.3. Who issues the shares?
3.1.1.4. Who is the transferor of cash or other resources?
3.1.1.5. Who is the larger entity?
3.2. Determining the acquisition date
3.2.1. The acquirer recognizes as a resulting
3.2.1.1. Goodwill as an asset
3.2.1.2. Gain on a bargain purchase as gain in profit or loss
3.3. Recognizing and Measuring Goodwill
3.3.1. Formula
3.3.1.1. Consideration transferred XX Non-Controlling interest in the acquiree XX Previously held equity interest in the acquiree XX _ ____________________________ Total XX Less: FV of net XX Identifiable assets acquired XX _ ____________________________ Goodwill/(Gain on bargain purchase) XX
4. Essential Elements
4.1. Business
4.1.1. Input
4.1.2. Process
4.1.3. Output
4.2. Control
5. Specific Recognition Principles
5.1. Operating Leases
5.1.1. Acquiree is the lessee
5.1.2. Acquiree is the lessor
5.2. Intangible assets
5.2.1. Seperability Criterion
5.2.2. Contractual-legal criterion