Intercorporate

Acquisitions
and
Investment in
Other Entities

Ch 1
 Organizational Structure and Financial Reporting

1. Merger
2. Controlling Ownership
3. Noncontrolling Ownership
4. Other Beneficial Interest

Business Combination
1. Statutory Merger
2. Statutory Consolidation
3. Stock Acquisition.
A A

Statutory Merger
B

A
C

B
Statutory Consolidation

A
A

B B
Stock Acquisition
 A invests in B

Acquires net assets Acquires Stock

Yes
Acquires company liquidated

No

Record as statutory merger

Or consolidation Record as stock acquisition
and operate as a subsidiary
 Valuation of Business Entities
1. Value of individual assets and liabilities
2. Value of potential earnings
3. Value of consideration exchange
Obligasi 10 thn, 6% bunga dibayar thn-an, diterbitkan 3 tahun lalu. Tingkat
bunga pasar saat ini sebesar 10%,

PV 7, 10% of $100.000 ( 0.51316 x 100.000)  51.316

PV 10% of interest of $6.000 (4.86842)  29.211

PV of Bonds  80.527

Bargain company, menetapkan Cash Flow untuk 25 tahun kedepan sebesar

$35.000. Nilai sekarang unit usaha dengan tingkat bunga diskonto sebesar
10%, adalah sbb;

Annual cash flow generate  35.000

PV for annuity of 25 at 10%  9.07704

PV of future earnings  317 696

Creating Business Entities

• Illustration
• Allen Company mendirikan anak perusahaan Blaine Co, mentransfer
asset dan saham senilai Rp 100.000 dengan harga $2 per C/S.

Item Cost BV
Cash 70.000
Inventory 50.000 50.000
Land 75.000 75.000
Building 100.000 80.000
Equipment 250.000 160.000
Total 435.000
Allen Records
Invest. In Blaine C/S 435.000
Acc. Depr 110.000
Cash 70.000
Inventory 50.000
Land 75.000
Buildings 100.000
Equipment 250.000

Blaine Co. Records

Cash 70.000
Inventory 50.000
Land 75.000
Buildings 100.000
Equipment 250.000
Acc. Depr. 110.000
C/S 200.000
Add. Paid in Capital 235.000
• Jika pendirian Blaine co dilakukan secara partnership, dgn
perusahaan lain, contoh : Chaney co, menginvestasikan dana
$65.000 untuk porsi 10% C/S.

Blaine Records receipt of assets from Allen & Chaney

Cash 135.000
Inventory 50.000
Land 75.000
Buildings 100.000
Equipment 250.000
Acc. Depr 110.000
Capital, Allen 435.000
Capital, Chaney 65.000
 Acquisition Accounting
Applying acquisition method
1. No separate asset valuation account related to asset acquired are
recognized.

2. Long-live assets classified at the acquisition date as held for sale

are value at fair value lost cost to sell.

3. Deferred income taxes related to the business combination and

assets and liabilities related to an acquiree’s employee benefit
plans are valued in accordance with the specific FASB standards
relating to those topics.
 Goodwill
Goodwill is an asset representing the future economics benefit
arising from other assets acquired in a business combination. An
assets is considered to be identifiable, and therefore must be
separately recognized.

1. Asumsikan Albert comp. mengakuisisi seluruh asset Zandor comp.

sebesar $400.000, dgn nilai wajar utk asset bersih yang dapat
diidentifikasi sebesar $380.000. Hitung goodwill ?

2. Jika Albert comp. mengakuisisi 75% saham Zandor senilai $300.000,

dan nilai wajar atas pengendalian bisnis adalah $100.000.
Hitung Goodwill
1. Goodwill : 400.000 – 380.000 = $20.000

2. Goodwill :

Nilai wajar albert Comp.  300.000

Nilai wajar kepemilikan pengendalian 100.000

400.000
Nilai wajar dari akuisisi asset bersih yg
dapat diidentifikasi  (380.000)

Goodwill  20.000
 Combination effected through acquisition
of net assets
Illustrations
1. Point corp. mengakuisisi seluruh asset dan kewajiban
sharp corp, secara statutory merger dengan
menerbitkan 10.000 lbr saham/ $10 per lembar. Harga
pasar atas saham tersebut $610.000.
2. Biaya Legal dan appraisal adalah $40.000.
sehubungan dengan penggabungan tersebut terdapat
biaya penerbitan saham sebesar $25.000.
3. Susun jurnal pencatatan oleh Point Corp.
4. Susun jurnal pencatatan Sharp company.
Point Co. Records
Cash 45.000
Inventory 75.000
Land 70.000
Buildings & Equipment 350.000
Patent 80.000
Goodwill 100.000
Current Liabilities. 110.000
C/S 100.000
Add. Paid in Capital 485.000
Deferred Stock Issue Cost 25.000

Merger Expense 40.000

Cash 40.000

Deferred Stock Issue Cost 25.000

Cash 25.000
Sharp Records

Invest. In Blaine C/S 610.000

Current Liabilities 100.000
Acc. Depr. 150.000
Cash 45.000
Inventory 65.000
Land 40.000
Buildings & Equipment 400.000
Gain on sale of net 310.000

C/S 100.000
Add. Paid in Capital 50.000
R/E 150.000
Gain on sale of net 310.000
Investment in point stock 610.000
Bargain Purchases

Asumsikan Point corp. mengakuisisi Sharp comp. secara tunai $500.000. Nilai
wajar atas asset bersih yang dpt diidentifikasi sebesar $510.000.

Point Records

Cash & Receivable 45.000

Inventory 75.000
Land 70.000
Building & Equipment 350.000
Patent 80.000
Cash 500.000
Current Liabilities 110.000
Gain on bargain of sharp 10.000
Combination Effected Through Acquisition Stock

1. Jika Point Corp. menukar 10.000 lbr sahamnya dengan total

asset sharp corp senilai $610.000, dengan biaya penggabungan
dan penerbitan saham masing-masing senilai $40.000 dan
$25.000.
2. Susun financial reporting subsequent untuk kasus ini.
Point Co. Records

Inv. In Sharp Stock 610000

C/S 100.000
Add. Paid in Capital 485.000
Deferred Stock Issue Cost 25.000

Merger Expense 40.000

Deferred Stock Issue Cost 25.000
Cash 65.000
 Uncertainty Business Combination

• Bains Comp. mengakuisisi tanah dengan estimasi nilai wajar

$100.000. Selama proses akuisisi, nilai appraisal tanah tsb
$110.000., dan selama masa pencatatan accounting diketahui
bahwa lingkungan disekitar tanah terdapat pembuangan sampah,
sehingga harga tanah menyusut senilai $75.000.

• Susun jurnal atas transaksi di atas.

 Non-controlling equity held prior to combination
• Lemon Comp memiliki 10% saham Aide corp. senilai $500.000. Lemon
mengakuisisi sisa saham Aide secara tunai sebear $4.500.000. Total
investment $5.000.000.
• Diketahui kepemilikan 10% investasi Lemon di Aida dengan nilai buku
sebesar $300.000 dan nilai wajar $500.000 pada tanggal Lemon
mengakuisisi 90% saham Aide.
• Kemudian Lemon merevaluasi original investasinya di Aide yang nilai
wajarnya sebesar $500.000 dicatat hanya $200.000.

Lemon Records

Inv. In Aide 200.000

Gain on revaluation of Aide C/S 200.000

Inv. In Aide 4.500.000

Cash 4.500.000
Selesai