Term
|
Definition
| the acquirer recognizes all assets acquired and liabilities assumed in a business combination and measures them at their acqusition-date fair values. |
|
|
Term
|
Definition
| the fair value of the consideration given in a business combination, along with the fair value of any equity interest in the acquiree already held and the fair value of any noncontrolling interest in the acquiree, is less than the fair value of the acquiree's net identifiable assets. |
|
|
Term
|
Definition
| occurs when an ancquirer obtains control of one or more businesses. |
|
|
Term
| consolidated financial statements |
|
Definition
| combined financial statements of a parent company and its subsidiaries' that portrays the related companies as if they were a single company. |
|
|
Term
|
Definition
| the ability to direct policies and management |
|
|
Term
|
Definition
| the total difference at the acquisition date between the fair value of the consideration exchanged and the book value of the net identifiable assets acquired. |
|
|
Term
|
Definition
| an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. |
|
|
Term
|
Definition
| transferring the acquired company's assets and liabilities to the acquiring company and dissolving the acquired company |
|
|
Term
|
Definition
| a period of time allowed by FASB to acquire or properly ascertain fair values. |
|
|
Term
|
Definition
|
|
Term
|
Definition
| the total shares of an acquired company not held by the controlling shareholder |
|
|
Term
|
Definition
| a company that controls another company, usually through majority ownership of its common stock. |
|
|
Term
| parent-subsidiary relationship |
|
Definition
| the relationship created in a stock acquisition |
|
|
Term
|
Definition
| created earnings and provided misleading financial reporting subsequent to a combination. |
|
|
Term
|
Definition
| a company that has the ability to make decisions significantly affecting the results of another entity's activities or is expected to receive a majority of the other entity's profits and losses. |
|
|
Term
| special-purpose entity (SPE) |
|
Definition
| a financing vehicle that is not a substantive operating entity, usually one created for a single specified purpose. May be in the form of a corporation, trust, or partnership. |
|
|
Term
|
Definition
| the ownership of a newly created of existing subsidiary is distributed to the parent's stockholders surrendering any of their stock in the parent company. |
|
|
Term
|
Definition
| the subsidiary's shares are exchanged for shares of the parent, thereby leading to a reduction in the outstanding shares of the parent company. |
|
|
Term
|
Definition
| a business combination in which both combining companies are dissolved and the assets and liabilities of both companies are transferred to a newly created corporation. |
|
|
Term
|
Definition
| type of business combination in which only one of the combining companies survives and the other loses its separate identity. |
|
|
Term
|
Definition
| when one company acquires the voting shares of another company and the two companies continue to operate as separate, but related, legal entities. |
|
|
Term
|
Definition
| a corporation that is controlled by another corporation |
|
|
Term
|
Definition
| an offer inviting the shareholders of another company to "tender" or exchange their shares for securities or assets of the acquiring company. |
|
|
