Accounting Assignment Help

The article describes how accounting is an art of documenting and interpreting financial information on away that can be easily understood. The article further says that budget which are very difficult of all accounting is taught in a very easy to understand manner.

Growth is a major objective of many business organizations. A company may grow gradually expanding its product lines, facilities or services. In the past decade, many companies have achieved their goal of expansion through business combinations which occurs when the operations of two or more companies (inter- related or outside) are brought under common

Control. The objective of this accounting assignment help to specify the guidelines, principles and requirements in respect of financial reporting by an entity when it undertakes a business combination. It aims to enhance the relevance, reliability and comparability of the information provided in financial statements on business combinations and effects thereof.  In this regard, the Standard establishes principles and requirements for the entity obtaining control of the other business for:

A. Recognizing and measuring in its financial statements the identifiable assets acquired, the liabilities assumed and any non- controlling interest of the other business;

B. Recognizing and measuring the goodwill acquired in the business combination or a gain from a bargain purchase; and

C. Determining the information to be disclosed in its financial statements to enable its users to evaluate the nature and financial effects of the business combination.

In other  words,  the  core  principle of the Standard  is that  an acquirer  of a business recognizes the  assets  acquired and liabilities assumed  at their acquisition-date fair values  and discloses information that  enables  users to evaluate the nature  and financial effects of the acquisition. hese principles and requirements  lead to accounting under  the  ‘acquisition method’. Thus all business combinations within the scope of this Standard are to be accounted for using the ‘acquisition’ method.

The web site also offers and business combination as a transaction or other event in which an entity obtains control of one or more businesses. In other  words, it is the  bringing together  of separate  entities into one economic entity as a result of one entity obtaining control over the net assets and operations of another entity.

The Standard applies to all transactions or other events which meet the definition of a business combination (as given in previous paragraph).  Transactions referred to as ‘true mergers’ or ‘mergers of equals’ are also business combinations.

The following are few examples of transactions or events that constitute a Business Combination:

A. Holding-Subsidiary relationship:  an event where an entity’s acquisition of business of another entity gives rise to a holding / subsidiary relationship;

B. Transfer of net assets/equity interests to an existing combining entity:  a transaction in which one entity transfers its net assets, or its owners transfer their equity interests, to another entity or its owners. The term

‘Owners’ is used broadly to include holders of equity interests of investor-owned entities and owners or members of, or participants in, mutual entities;