Using fair value accounting for goodwill , under FAS 141R, determine the amount of Goodwill that the acquiring company enters on its balance sheet in the following situation Oxford Corporation is acquiring the target Bickley, Inc in a merger Both companies are publicly listed Bickley 's market valu...

Calculation of fair value of equity on the date of merger Equity before a ...

Using fair value accounting for goodwill , under FAS 141R, determine the amount of Goodwill that the

Question:

Using fair value accounting for , under FAS 141R, determine the amount of Goodwill that "the acquiring company" enters on its in the following situation: Oxford is acquiring the target Bickley, Inc. in a merger. Both companies are publicly listed. Bickley's market valuation in the merger is $9.0 billion, and its equity value on its before any adjustments is $5.5 billion. During the merger process, Bickley's inventories will be written down by $500 million, and its receivables will be written down by $400 million. On the other hand, under fair value accounting, its plant and equipment will increase in value by $1.0 billion. Its patents and trademarks, however, will decrease in value by $500 million.
What is the new equity value of Bickley on its Goodwill
Goodwill is an important concept and terminology in accounting which means good reputation. The word goodwill is used at various places in accounting but it is recognized only at the time of a business combination. There are generally two types of... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...