孩只k学 博学而笃志切向而近思 Chapter 1 Business Combinations (企业业务合并)
Chapter 1 Business Combinations （企业/业务合并）
Business Combinations: Objectives 1. Understand the economic motivations underlying business combinations 2. Learn about the alternative forms of business combinations, from both the legal and accounting perspectives 3. Introduce concepts of accounting for business combinations, emphasizing the acquisition method 4. See how firms make cost allocations in an acquisition method(购买法) combination
Business Combinations: Objectives 1. Understand the economic motivations underlying business combinations. 2. Learn about the alternative forms of business combinations, from both the legal and accounting perspectives. 3. Introduce concepts of accounting for business combinations, emphasizing the acquisition method. 4. See how firms make cost allocations in an acquisition method（购买法） combination
Business combinations 1: Economic Motivations
1: Economic Motivations Business Combinations
Types of Business Combinations Business combinations unite previously separate business entities Horizontal integration -same business lines and markets Vertical integration -operations in different but successive stages of production or distribution or both Conglomeration -unrelated and diverse products or services
Types of Business Combinations Business combinations unite previously separate business entities. Horizontal integration – same business lines and markets Vertical integration – operations in different, but successive stages of production or distribution, or both Conglomeration – unrelated and diverse products or services
Reasons for combinations ● Cost advantage ● Lower risk Fewer operating delays o Avoidance of takeovers o Acquisition of intangible assets o Other: business and other tax advantages, personal reasons
Reasons for Combinations Cost advantage Lower risk Fewer operating delays Avoidance of takeovers Acquisition of intangible assets Other: business and other tax advantages, personal reasons