Merger

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October 9, 2017 at 11:24 am #410011
tarek
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Dear Mike,

If company A purchased company B as merger So Company B isnt exists any more. The cost of acquission is more than net fair value of company B. This difference should be recorded as goodwill? If not how i can record in company A books?

Thanks
October 9, 2017 at 3:26 pm #410043
MikeLittle
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Why not goodwill?

And why close down company B?

And merger accounting no longer exists – there is always an acquirer and an acquiree so any amount paid in excess of fair value is goodwill

And, finally, mergers are not part of your syllabus, even if they did exist!

OK?
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