会计英语：企业合并

　　1. Business Combinations 企业合并
　　Definition: the bringing together of separate entities or businesses into one reporting entity.
　　我国会计准则：将两个或两个以上单独的企业合并形成一个报告主体的交易或事项。
　　combination n. combine v. 联合，结合
　　reporting entity
　　merger and acquisition
　　Acquisition n. 购买 acquire v.
　　　　　　　　e.g. acquire fixed assets　　　　acquisition of fixed assets购买固定资产
　　　　　　　　　　　　收购，并购
　　　　　　　　e.g. acquisition of the share capital 收购股份资本

　　2. Types of Business Combinations 企业合并的种类
　　按涉及的行业：
　　- horizontal integration 横向合并 （水平式合并）
　　- vertical integration 纵向合并（垂直式合并）
　　- conglomeration 混合合并（多种经营合并）
　　从法律形式上讲:
　　- merger　吸收合并
　　- consolidation　新设合并
　　- acquisition of majority interest　控股合并
　　> majority interest　多数股东权益
　　minority interest　少数股东权益
　　从合并动机来看：
　　- 善意收购　friendly acquisition
　　- 恶意收购　hostile acquisition

　　3. consideration of business combination 企业合并的支付方式：
　　现金合并　cash-for-assets 现金置换资产
　　　　　　　cash-for-shares （cash-for-stock） 现金置换股份
　　股票合并　shares-for-assets （stock-for-assets） 股份置换资产
　　　　　　　share-for-share （stock-for-stock） 股份置换
　　Lecture illustration 1—Cash-for-share acquisition 现金合并
　　In July 2007, Company A acquired all of the issued shares of company B in a market transaction for $1,000,000 cash. The acquisition has resulted in a business combination. Currently, A becomes the shareholder and the parent of B.
　　Lecture illustration 2—Share-for-share acquisition 股权合并

　　In July 2007, A Company acquired all of the issued shares of B company in exchange for shares of A with a fair value of $2,000,000.A becomes the shareholder of B and the shareholders of B become shareholders of A.

　　4. relationship from business combination 合并之后所产生的关系
　　Investor/ Investee Relationships 投资者和被投资者

　　Parent/subsidiary relationship 母公司和子公司

　　Reporting Requirement—prepare Consolidated Financial Statements

　　5. Control 控制
　　A business combination of entities always involves one entity acquiring control over another business entity。

　　The power to control is the power to govern the financial and operating policies （控制经营及财务方针）of an entity to gain benefits from its activities（从该企业的经营活动中获利）.
　　Can be exercisable directly or indirectly through another subsidiary. 直接或间接实施
　　Lecture illustration 3—Direct and Indirect control
　　A company owns 100 % of the voting shares in B company and 35% of the voting shares （有投票表决权的股份） in C Ltd. B company also owns 25% of the voting shares in C company.

　　6. Acquisition method /purchase method 购买法
　　Date of Acquisition 购买日
　　- The date of acquisition is the date the acquirer acquires the power to control a subsidiary.
　　- Importance of the Date of Acquisition：determine the fair value of the cost of acquisition and net assets of the subsidiary at acquisition
　　Business combination cost 企业合并成本
　　Acquisition cost= fair value of the consideration （at exchange date） + directly attributable 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.
　　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.
　　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：

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

　　按公允价值把投资成本分配可辨认的资产和负债，并记录商誉:
　　Dr：Bank deposit　　　　　　　　　60，000
　　　　Account receivable　　　　　　130，000
　　　　Inventory　　　　　　　　　　 230，000
　　　　Land　　　　　　　　　　　　　100，000
　　　　Fixed assets　　　　　　　　　850，000
　　　　Intangible assets—patent　　 50,000
　　　　Intangible assets—goodwill　 200，000
　　　　Cr：Accountable payable 　　　　　60，000
　　　　　　Note payable　　　　　　　　　115，000
　　　　　　Other liabilites　　　　　　　45，000
　　　　　　Long-term equity investment—M company 1，400，000
　　借：银行存款　　　　　　　　　　　600，000
　　　　应收账款（净）　　　　　　　　130，000
　　　　存货　　　　　　　　　　　　　230，000
　　　　土地　　　　　　　　　　　　　100，000
　　　　固定资产（净）　　　　　　　　850，000
　　　　无形资产—专利权　　　　　　　50,000
　　　　无形资产—商誉　　　　　　　　200，000
　　　　贷：应付账款 　　　　　　　　　　60，000
　　　　　　应付票据 　　　　　　　　　　115，000
　　　　　　其他负债　　　　　　　　　　 45，000
　　　　　　长期股权投资—M公司　　　　　1，400，000
　　Lecture Example 4
　　A Ltd owns 100% of B Ltd. Goodwill on consolidation is $500. At the end of years 1 and 2, impairment losses of $100 are to be recognised.
　　consolidation entry of 1^st year:
　　Dr：Impairment loss　　　　　　　　　　　　　　100
　　　　Cr：Accumulated impairment losses – Goodwill 　100
　　consolidation entry of 2^nd year:
　　Dr：Impairment loss　　　　　　　　　　　　　　100
　　　　Opening retained earnings　　　　　　　　　100
　　　　Cr：Accumulated impairment losses – Goodwill　　200