CHAPTER 1
BUSINESS COMBINATION
Reason For Business Combination :
1. Cost Advantage. It is frequently less expensive for a firm to obtain needed facilities throught combination than through development.
2. Lower Risk. The purchase of established product lines and market is usually less risky than developing new product and markets.
3. FewerOperating Delays. Plant facilities acquired through a business combination are operative and allready meet environmental and other government regulations.
4. Avoidance of takeovers. Many companies combine to avoid being acquired themselves.
5. Acquisition of intangible assets. Business combination bring together both intangible and tangible resources.
nah .. ini saya berikan ilutrasi nya
Assume that poppy corp. issues 100,000 share of $10 par common stock for the net assets of Sunny Corp in a business combination on July 1, 2009. The Market Price of Poppy Common stock on this date is $16 per share. Additional direct cist of the business consist of SEC fees of $5,000 , accountants fees in connection with the SEC registration statement of $ 10,000 , costs for printing and isssuing the common stock certificates of $ 25,000 and finder's and consultant's fees of $80,000.
Poppy corp records the issuance of the 100,000 share on its books as follows (in thousands) :
Investment in Sunny 1,600
Common stock 1,000
Additional Paid in Capital 600
Poppy records additional direct cost of the business combination as follows :
Invesment expense 80
Additional Paid in capital 40
Cash 120
Cost (biaya) yang dikeluarkan di tas itu hanya satu kali saat pertama akuisisi.
BUSINESS COMBINATION
Reason For Business Combination :
1. Cost Advantage. It is frequently less expensive for a firm to obtain needed facilities throught combination than through development.
2. Lower Risk. The purchase of established product lines and market is usually less risky than developing new product and markets.
3. FewerOperating Delays. Plant facilities acquired through a business combination are operative and allready meet environmental and other government regulations.
4. Avoidance of takeovers. Many companies combine to avoid being acquired themselves.
5. Acquisition of intangible assets. Business combination bring together both intangible and tangible resources.
nah .. ini saya berikan ilutrasi nya
Assume that poppy corp. issues 100,000 share of $10 par common stock for the net assets of Sunny Corp in a business combination on July 1, 2009. The Market Price of Poppy Common stock on this date is $16 per share. Additional direct cist of the business consist of SEC fees of $5,000 , accountants fees in connection with the SEC registration statement of $ 10,000 , costs for printing and isssuing the common stock certificates of $ 25,000 and finder's and consultant's fees of $80,000.
Poppy corp records the issuance of the 100,000 share on its books as follows (in thousands) :
Investment in Sunny 1,600
Common stock 1,000
Additional Paid in Capital 600
Poppy records additional direct cost of the business combination as follows :
Invesment expense 80
Additional Paid in capital 40
Cash 120
Cost (biaya) yang dikeluarkan di tas itu hanya satu kali saat pertama akuisisi.
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