BUSCOM

Question 1

Result of Buscom can be computed by:

Answer 1

Aggregate of:
**Consideration Given
- Cash
- Issued sh
- Issued Bonds
- Contingent Consideration
** FMV-NCI
** FMV PHEI (step acquisition)

VS
1. FMV-IDENTIFIABLE NET ASSETS ACQUIREE
-excludes existing GW
identifiable- meaning pwede mong ibenta kaya hindi kasama ang GW
2. A-L= NET ASSETS

Question 2

Explain contingent consideration

Answer 2

Contingent Consideration can be in the form of liability or equity. In which it is settled in future date. Always include contingent consideration in the computation of consideration given

Question 3

AGGREGATE > FMV INA =

Answer 3

GOODWILL- subject for impairment testing

Question 4

AGGREGATE < FMV INA

Answer 4

= GAIN ON BARGAIN PURCHASE PART OF P/L

Question 5

ONE OF THE PART OF CONSIDERATION GIVEN IS THE FMV OF NCI. EXPLAIN FMV OF NCI

Answer 5

FMV NCI can be computed in 2 ways:
1. Given or
2. Assume/ Compute
** whether Given/Assume always check proportionate share
How to compute proportionate share?
1. FMV INA X NCI %

Question 6

Explain Acquisition Costs

Answer 6

Acquisition Related Costs are those costs which are expensed outright as determined by PAR 53. such as acctng fees, legal fees, finders fees and listing fee. (not limited here)

Question 7

Explain Stock Issuance Costs (memorize these) exclusive

Answer 7

a. Sec registration fee
b. printing stock certificate
c. newspaper publication fee
d. docstamp tax

Question 8

Explain the PIC Rule in terms of SIC.

Answer 8

PIC Rule states that:
1. Exhaust SIC to Resulting APIC
2. Any excess should be debited to Stock Issuance acct and contra acct
a. APIC ACQUIRER
b. RE ACQUIRER
(in order of priority)