Consolidated Financials

Question 1

Are acquisition related cost expensed?

Answer 1

Yes. Examples are general and administrative costs and consulting fees.

Question 2

Are cost of registering and issuing equity securities charged to APIC?

Answer 2

Yes. They are not expensed. They are charged to APIC

Question 3

True of false. When a company has control of another company, sales and COGS should be reduced by intraentity sales regardless of non controlling interest.

Answer 3

True. Example, if a company owns 80% of a company, all sales between the two are eliminated without regard for the 20% non controlling interest.

Question 4

Fun fact

Answer 4

In a business combination, the shares issued to acquire the business are recorded at the fair value on the acquisition date.

Question 5

Goodwill

Answer 5

Excess of the sum of the consideration transferred, any non controlling interest, the acquirers previously held equity in the acquirer over the net identifiable assets acquired.