costs

购买成本=买价+直接费用. consideration（支付对价）

directly attributable costs：such as the professional fees paid to accountants, legal advisers, and other consultants 直接费用（审计、评估、法律等费用） Lecture Example 1

On July 1 20X6, Walton Ltd acquired the share capital of Nero Ltd for $20,000,000. Other incidental costs included legal costs $200,000, consultation fees $300,000 and estimated general administrative costs of $100,000.Please calculate the cost of acquisition. [答疑编号811100104]

The cost of acquisition = the fair value of the consideration + directly attributable costs = $20,000,000 + （$200,000+$300,000+$100,000） = $20,600,000 Fair value of identifiable net assets可辨认净资产的公允价值的确定 Net assets= identifiable assets－（liabilities +contingent liabilities）

Goodwill商誉

- 购买商誉: cost of business combination ≠ fair value of net assets

- If the cost of acquisition > the equity acquired in the net assets of the subsidiary→goodwill. - If the cost of acquisition < the equity acquired in the net assets of the subsidiary→excess - Goodwill—test for impairment annually

Lecture Example 2—Measurement of Goodwill

On July 1 2007 – W company acquired the share capital of S company for $14,000,000 cash. At June 30 20X6, shareholders’ equity of S company was share capital $2,000,000 and retained earnings $5,000,000.

[答疑编号811100105] Analysis of Investment

Fair value of shareholders’ equity of S company Share capital $ 2,000,000 Retained earnings 5,000,000 Fair value of equity acquired $7,000,000

Cost of investment 14,000,000 Goodwill $7,000,000 Lecture Example 3

On Dec. 20, 2007，L company acquired all of the net assets of M company under acquisition method, which resulted in a business combination. Before acquisition, the carrying valued and the fair value of M’s assets and the liabilities are those in the following table:

公司使用购买法完成企业合并，取得M公司的净资产，在合并前M公司的资产和负债的账面价值及公允价值如下：

Assets Bank deposit Account receivable Inventory land Fixed assets Intangibles—patents Total assets Liabilities Accounts payable Notes payable Carrying value 60,000 140,000 180,000 50,000 550,000 980,000 60,000 130,000 Fair value 60,000 130,000 230,000 100,000 850,000 50,000 1,420,000 60,000 115,000 Other liabilities Total liabilities Net assets 40,000 230,000 750,000 45,000 220,000 1,200,000

Assumed that L company paid cash $400，000 and issued 50000 common share, par value $10,at the value of $20 as the consideration. [答疑编号811100106]

假定L公司支付现金400，000元，并发行面值为10元、市价为20元的普通股50 000股，来取得M公司的净资产。L公司记录此合并会计分录为 记录投资成本：

Dr：Long-term equity investment—M company 1，400，000 Cr：Bank deposit 400，000 Share capital 500，000 Capital reserve 500，000 借：长期股权投资—M公司 1，400，000 贷：银行存款 400，000 股本 500，000 资本公积 500，000