AccountingNature of the Assignment:
Select one public companies who have undertaken an acquisition of a subsidiary within the past three years. Use publicly-available information on the companies, such as annual and quarterly reports, company websites, and investor presentations to research the impact of the acquisitions on both the companies? financial statements and on their underlying business. The target word length of the paper is 1,500-2,000 words (excluding exhibits).
Your paper should cite all sources used (Bibliography, end notes). Please attach copies of relevant extracts of materials used (e.g. relevant pages from annual reports).
Details of company acquired (10 marks)
?Purchase consideration (amount and nature)
?% ownership acquired
?Date of acquisition
?Was the acquisition done in multiple steps or all at one time?
Allocation of acquisition differential (10 marks)
?What was the amount of the acquisition differential?
?What was it allocated to?
?How is it being amortized?
?Have there been any goodwill impairment losses or other acquired asset impairment losses reported since the acquisition?
Accounting Policies (10 marks)
?GAAP followed by the company (ASPE, IFRS ,US , Other)
?What does the company disclose regarding its accounting policies for investments in subsidiaries and other investees?
?What disclosures has the company provided regarding the timing and expected impact on their financial statements of conversion to IFRS , if applicable or use of global accounting policies (non-Canadian companies)
MOS 4465A ? HAND-IN ASSIGNMENT (continued)
Impact of Acquisition on Financial Statements: (20 marks)
?Impact on balance sheet in year of acquisition
?Impact on income statement in year of acquisition
?Impact on cash flow statement in year of acquisition
?Has the acquisition impacted the company?s exposure to foreign currencies (e.g. revenues/expense streams in foreign currencies, investment in foreign operation)?
Note Disclosures on Acquisition: (10 marks)
?Do note disclosures pertaining to the acquisition meet Handbook disclosure requirements for business combinations?
?Have pro-forma financial statements been provided?
Strategic Rationale for the Acquisition: (20 marks)
?Reason why company was acquired
?Likely impact on future operations and profitability of company
