Table of Contents

Chapter 1 - Business Combinations. 1

Overview of Business Combinations. 1

Identifiable Assets and Liabilities, and Noncontrolling Interests. 3

Goodwill or Gain from Bargain Purchase. 5

Goodwill Calculation. 5

Bargain Purchase. 6

Reverse Acquisitions. 7

Related Issues. 8

Acquisition of Assets. 8

Transactions between Entities under Control of Same Parent 9

Pushdown Accounting. 9

Income Taxes. 10

Business Combination Disclosures. 11

General Disclosures. 11

Identifiable Assets and Liabilities, and any Noncontrolling Interest 12

Goodwill or Gain from Bargain Purchase. 13

Reverse Acquisitions. 13

Transactions between Entities under Control of Same Parent 14

Income Taxes. 14

Chapter 2  The Equity Method. 16

The Equity Method. 16

Partnerships, Joint Ventures, and Limited Liability Entities. 18

Equity Method Disclosures. 19

Chapter 3 - Goodwill Impairment 21

Goodwill 21

Goodwill Amortization. 24

Goodwill Disclosures. 24

Chapter 4 - Financial Statement Consolidation. 28

Overview of Consolidations. 28

Recognition of a Consolidation. 29

Consolidation Examples. 31

Recognition of Noncontrolling Interest 31

Sale of Shares by Subsidiary. 32

Share of Accumulated Other Comprehensive Income. 33

Full Consolidation Example. 33

Consolidation of Variable Interest Entities. 35

Initial Consolidation. 36

Subsequent Consolidation. 36

Consolidation of Leasing Entities by Private Companies. 36

Consolidation of Contractually-Controlled Entities. 37

Control of Partnerships. 38

Termination of a Consolidation. 39

Consolidation Presentation. 39

Consolidation Disclosures. 41

Chapter 5 - Accounting Integration. 45

Accounting Integration Activities. 45

Answers to Chapter Questions. 51

Glossary. 56

Index. 58