Deloitte FAS 141R-Acquisition Accounting

More documents

Recommendations

Info

Example 7 — measurement period adjustmentsAcquisition ClosesMeasurement Period Closes6/30/09 1/1/101/1/09 3/31/09 9/30/09Facts10Q includestax estimatesTax acquisitionaccountingfinalized• On January 1, 2009, Company X acquired 100% of Target• Company X collects jurisdictional tax rate information and analyzes Target’s deferred taxassets and liabilities• Company X closes FY 2009 Q1 with estimates for taxes and discloses in its businesscombination footnote that data is still being gathered to finalize the tax accounting• In June 2009, Company X gathers all information needed to finalize tax adjustmentsassociated with the transaction (for facts that existed as of the acquisition date) andrecords the entries in its June close• In July 2009, Company X files its Form 10Q and discloses the tax accounting has beenfinalized for the acquisition of TargetCopyright © 2012 Deloitte Development LLC. All rights reserved.42
Example 7 — measurement period adjustments(cont.)Acquisition ClosesMeasurement Period Closes1/1/09 3/31/09 6/30/09 9/30/09 1/1/10(1) Additional Facts10Q includestax estimatesTax acquisitionaccountingfinalized• In June 2009, in connection with finalizing tax accounting related to theacquisition, Company X management identifies new information• New information (which existed at acquisition date) makes a portion of theacquired entity's deferred tax assets not MLTN of being realized• Company X’s management concludes an adjustment is needed to increase thevaluation allowanceWhat journal entry is necessary?Copyright © 2012 Deloitte Development LLC. All rights reserved.43
Page 4: Tax status of enterprise being acqu
Page 7 and 8: Taxable business combinations• Ac
Page 9 and 10: Financial Reporting for TaxesStep 2
Page 11 and 12: Example 1 — taxable asset purchas
Page 14 and 15: Application to specific basis diffe
Page 16 and 17: Goodwill (cont.)Tax Accounting for
Page 18 and 19: In-process R&DFinancial Reporting
Page 20 and 21: Deferred revenueFinancial Reporting
Page 22 and 23: Accrued compensationFinancial Repor
Page 24 and 25: Uncertain tax positions — general
Page 28 and 29: Valuation allowances — section 38
Page 30 and 31: Example 4 — indemnification and U
Page 34 and 35: Transaction costs — pre-acquisiti
Page 36 and 37: Example 5 — transaction costs (co
Page 38 and 39: Example 6 — transaction costsFact
Page 44 and 45: Example 7 — measurement period ad
Page 46 and 47: Example 8 — contingent considerat
Page 54 and 55: Sample UTB tabular rollforward(Doll
Page 56 and 57: Supporting process and documentatio
Page 58 and 59: Copyright © 2012 Deloitte Developm
Page 60: About DeloitteDeloitte refers to on

Deloitte FAS 141R-Acquisition Accounting

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?