The document provides information about a group project for an Advanced Financial Accounting class. It includes the names and student IDs of three group members - Anfal Kankouni, Tawaseef Alenezi, and Mathayel Alshammari. The presentation topics are on mergers and acquisitions as well as consolidated financial statements. The document outlines the key points to be covered on the differences between acquisitions and mergers, types of mergers, and consolidated financial statements. It also provides examples and explanations of the topics.
The document provides information about a group project for an Advanced Financial Accounting class. It includes the names and student IDs of three group members - Anfal Kankouni, Tawaseef Alenezi, and Mathayel Alshammari. The presentation topics are on mergers and acquisitions as well as consolidated financial statements. The document outlines the key points to be covered on the differences between acquisitions and mergers, types of mergers, and consolidated financial statements. It also provides examples and explanations of the topics.
The document provides information about a group project for an Advanced Financial Accounting class. It includes the names and student IDs of three group members - Anfal Kankouni, Tawaseef Alenezi, and Mathayel Alshammari. The presentation topics are on mergers and acquisitions as well as consolidated financial statements. The document outlines the key points to be covered on the differences between acquisitions and mergers, types of mergers, and consolidated financial statements. It also provides examples and explanations of the topics.
The document provides information about a group project for an Advanced Financial Accounting class. It includes the names and student IDs of three group members - Anfal Kankouni, Tawaseef Alenezi, and Mathayel Alshammari. The presentation topics are on mergers and acquisitions as well as consolidated financial statements. The document outlines the key points to be covered on the differences between acquisitions and mergers, types of mergers, and consolidated financial statements. It also provides examples and explanations of the topics.
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ACT460
PROJECT DELIVERABLE PRESENTATION ADVANCED FINANCIAL ACCOUNTING A N FA L K A N K O U N I 3 6 3 6 4 TAWA S E E F A L E N E Z I 3 8 7 6 5 M AT H AY E L A L S H A M M A R I 4 0 0 3 4 Instructor: Ali Coskun Section O6 INTRODUCTION - MERGER & ACQUISITION - CONSOLIDATED FINANCIAL STATEMENT
Anfal Kankouni 36364
01
difference between acquisition and merger
02
Difference between horizontal merger and
vertical merger and conglomerate merger
03
consolidated financial statements
Anfal Kankouni 36364
- company buy a portion of another company.
ACQUISITION - It happen to acquire the basic structure or assets of other company
- purchase of over 50 percent > Gives the Parent the right to decide
ANFAL KANKOUNI 36364
MERGERS ARRANGEMENT FOR BRINGING TOGETHER TWO S E PA R AT E B U S I N E S S E S I N T O O N E S I N G L E B U S I N E S S .
a combination of two or more competitors selling the same
Horizontal Merger: goods or services.
involves company to merge with an
Vertical Merger: organization that is similar to it in term of industry
combination between two or more businesses involved in
Conglomerate Merger: separate operations.
ANFAL KANKOUNI 36364
CONSOLIDATED FINANCIAL STATEMENTS THE ACCOUNTS OF A MULTI-DIVISIONAL OR SUBSIDIARY COMPANY.
- businesses use the word consolidated loosely in financial statement reporting to refer to the aggregated reporting
of their whole business.
- If a business is involved internationally then the enterprise has to follow the rules set by (IFRS)
- Corporations may use the expense approach or equity method to account for its subsidiary ownership
ANFAL KANKOUNI 36364
The difference between IFRS and US GAAP based on the processes of acquisition and merger: IFRS GAAP Comparison
A business comprises of inputs and outputs and A company needs to provide at least an input and Defining the basic processes connected to inputs that are capable of a substantial process that together significantly concept .delivering outputs improves the ability to generate outputs.
NCI holdings would be calculated at market .At fair value Measurement of NCI valuation and part of the fair value of net assets at .the point of liquidation
There is no clear path with respect to popular power. The recipient shall declare net assets in the Entities under common .Business may report this at fair or GAAP value .accounts of the transferee at the historic price control
If an existing obligation arising from previous Both contingent assets and liabilities are Contingent assets and accidents and the reasonable worth may be recognized and measured at reasonable prices on liabilities measured correctly, particularly if it is not intended the acquisition date, whether a fair value may be to result in an out flight of resources, the contingent determined. Otherwise, these are only understood liability borne by a business combination would be if the commodity or duty is likely to exist at the .recognized. It should not consider variable capital time of purchase and the amount may be correctly .measured
TAWASEEF ALENEZI 38765
The difference between IFRS and US GAAP:
IFRS US GAAP Comparison
Power is the basis for takeover, no matter what the There are two consolidation frameworks. First and Consolidation style position of investee is. The shareholder of the stock foremost, organizations are open to the Variable may affect the company stock because it is prone to Interest Entity (VIE) system. Otherwise, the or has the right to uncertain returns as a result of its voting preference model is generalized to relationship with the investor, and it has the power to organizations where the VIE structure is not influence such returns through its jurisdiction over accurate. If a disclosing body holds a VIE, it has a .the investor .predominating financial stake in it
.There is no clear guidance for a limited agreement Clear advice is given relevant to limited Limited partnerships .partnerships
De facto influence is shown by the presence of There is no such thing as de facto power. As De facto control circumstances in which a parent corporation may previously mentioned in the context of the exercise control over an Investee's right despite (a) consolidation frameworks of the United States, holding less than a 1% voting interest and (b) the concept of productive management remains in missing legal and (or) contractual rights that would compliance with contracts. Generally Accepted allow the entity to exploit voting power or .Accounting Principles .shareholder boards of directors
TAWASEEF ALENEZI 38765
Acquisition of WhatsApp by Facebook IN 2014 THE ACQUISITION OF WHATSAPP BY FACEBOOK REACHED THE AMOUNT OF $3.2 BILLION.
MATHAYEL ALSHAMMARI 40034
What happened when Facebook revealed intentions to buy WhatsApp? WhatsApp owners add $16 trillion to the purchase price:
- $4 trillion capital - $12 trillion in Facebook stock - This sale price is damaged by Facebook’s current price which amount $21.8 billion. - Facebook offered an amount of $19.6 billion, adding $3,6 billion to the initial fee for remaining on Facebook for WhatsApp staff.
MATHAYEL ALSHAMMARI 40034
01
In 2014, more than 500 million individuals used
WhatsApp.. What is the add value on Facebook of its 02 acquisition of WhatsApp? By 2020, Facebook expects to have 2,8 billion daily active users..
