acquisition accounting
NCI at Acquisition: How to Calculate Non-Controlling Interest on the Date of Purchase
When HoldCo acquires 75% of SubCo, it controls SubCo from the acquisition date and must consolidate SubCo’s full balance sheet…
Negative Goodwill: Why the Bargain Purchase Gain Must Hit Your Consolidated P&L — Not Equity, Not Deferred Income
Claire is the group finance director of Atlas Industrial Group. The group has just completed the acquisition of Vantage Precision…
Acquiring a Property SPV Mid-Year: How to Handle the Purchase Price Allocation, Goodwill, and Your First Consolidation
In August, the board of Hartfield Property Holdings approved the acquisition of Stanmore Yield SPV Ltd, a commercial property holding…
Why Your Equity Pickup Is Wrong After Acquiring an Associate: Fair Value Adjustments and Embedded Goodwill
Sarah is group controller at a holding company that completed a 35% acquisition of DesignAssoc Ltd eight months ago. The…
How to Consolidate a New Subsidiary Acquired During the Year
The deal closed on 1 May. The group paid £2.4 million for a 75% stake in a profitable manufacturing business,…
Earn-Outs in Professional Services Acquisitions: Why the Contingent Consideration Accounting Only Exists in Your Group Accounts
Professional services acquisitions are structured differently from most deals. When a corporate group acquires a manufacturing business or a property…
Goodwill in Group Consolidation: Calculation, Impairment, and Common Errors
Of all the numbers that appear on a consolidated balance sheet, goodwill is typically the one that generates the most…
Acquisition Accounting in Group Consolidation: A Step-by-Step Guide to IFRS 3
When one company acquires another, the transaction creates a set of technical accounting requirements that will affect every group consolidation…
Goodwill in Group Consolidation: How to Calculate and Account for It in Your Group Accounts
When a group’s holding company acquires a controlling interest in another business, a new figure tends to appear on the…
How to Calculate Non-Controlling Interest (NCI) in Financial Consolidation
When a parent company acquires a controlling stake in another business but does not own 100% of it, the financial…