USCPA考点解析：Acquisition method

　　Acquisition values use fair value.

　　FV of consideration given/received，which is the more clearly evident. 参F10-3

　　Acquisition with cash

　　Dr.Investment in subsidiary

　　Cr.Cash

　　Acquisition with parent common stock（use FV at date transaction closes）

　　Dr.Investment in subsidiary

　　Cr.C/S（at par）

　　Cr. A.P.I.C（FV-par）

　　Acquisition Method Features

　　100% of the net assets of acquired entity are recorded at fair value.

　　Unallocated PPA（Purchase Price Allocation）recorded as goodwill

　　The subsidiary‘s entire equity is eliminated.

　　Pass Key

　　Fair Value=Acquisition Price=Investment in subsidiary

　　CAR IN BIG F3-24

　　C/S，APIC，R.E of subsidiary are Eliminated.

　　Investment in subsidiary is eliminated

　　Noncontrolling interest（NCI）is created

　　B/S of subsidiary is adjusted to Fair value

　　Identifiable intangible assets of the subsidiary are recorded at their fair value.F3-32

　　Goodwill/Gain is squeezed.

　　Consolidating W/P eliminating journal entry

　　Dr.C/S

　　Dr.A.P.I.C

　　Dr.R.E

　　Cr.Investment in subsidiary

　　Cr.Noncontrolling interest

　　Dr.B/S adjustments to FV

　　Dr.Identifiable intangible assets to FV

　　Dr.Goodwill

　　Subsidiaries fair value（Pass Key F3-25）

　　FV of subsidiary = Acquisition cost + Noncontrolling interest

　　FV of subsidiary=（NBV + B/S FV adjustment）+ Identifiable IA FV + Goodwill = FV of B/S + identifiable IA FV + Goodwill

　　Acquisition cost + noncontrolling interest = FV of B/S + Identifiable IA FV + Goodwill

　　Subsidiaries fair value（Pass Key F3-25）

　　企业被并重评值，总额要由对价定。

　　评估价值四大块，账面价值做基础。

　　账面价值不公允，差额调入合并表。

　　无形资产如可辩，公允价值表中增。

　　以上三块相加后，仍与总额有差异。

　　差异从来不可辩，记入商誉列表中。

　　Subsidiaries fair value （Pass Key F3-25）

　　企业价值四大块，最终浓缩为权益。

　　我是控股大股东，资产负债要全记。

　　其他股东分额小，但是权益还要占。

　　防止误导投资者，非控股东权益出。

　　老板紧催交合并，大汽车中列表做。

　　Subsidiaries fair value （Pass Key F3-25）

　　大汽车里做合并，个别报表按列排。

　　子方先把权益清，母方再把投资消。（CAR， I）

　　合并新增四项目，非控股东分净值。（N）

　　账面金额调公允，账外可辩无形增。（B，I）

　　商誉总是被挤出，各列相加合并成。（G）

　　“在大汽车里”CAR IN BIG做合并的注意事项

　　CAR=Assets-Liabilities=Equity=Net book value

　　Compute the difference between book value and fair value as of the acquisition date

　　R.E.Squeeze back to acquisition date

　　Investment in subsidiary

　　Capitalize cost

　　Original cost：FV of the consideration given

　　Bond issue cost

　　Expensed cost

　　Out-of-pocket cost. legal fee，finder‘s fee

　　Indirect costs

　　Reverse with A.P.I.C

　　Stock registration and issuance costs.