Nestl is a Swiss multinational food and beverage company. Its financial statement balances are reported in Swiss

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Nestlé is a Swiss multinational food and beverage company. Its financial statement balances are reported in Swiss francs (CHF). In late 2012 Nestlé acquired Wyeth Nutrition, an infant nutrition business focusing on emerging markets. The total purchase price consisted of CHF 11,078 million in cash and CHF 190 million in consideration payable in future years. The acquisition date fair values of Wyeth’s acquired identifiable assets and liabilities were as follows (in millions of CHF):

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Assuming Nestlé records this acquisition as a merger, prepare the journal entry it made in 2012 to record its acquisition of Wyeth Nutrition.

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Advanced Accounting

ISBN: 978-1618531513

3rd Edition

Authors: Susan S. Hamlen

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