APB 16: Business Combinations

SUMMARY

Problem                                                                                                                                                                                                    A business combination occurs when a corporation and one or more incorporated or unincorporated businesses are brought together into one accounting entity. The single entity carries on the activities of the previously separate, independent enterprises.                                                                                                                                                                 Two methods of accounting for business combinations—»purchase» and «pooling of interests»—have been accepted in practice and supported in pronouncements of the Board and its predecessor, the Committee on Accounting Procedure. The accounting treatment of a combination may affect significantly the reported financial position and net income of the combined corporation for prior, current, and future periods.

descargar



Deja un comentario