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How will valuation changes affect M&A deals?
Author(s) -
Woodlock Peter,
Peng Gang
Publication year - 2009
Publication title -
journal of corporate accounting and finance
Language(s) - English
Resource type - Journals
eISSN - 1097-0053
pISSN - 1044-8136
DOI - 10.1002/jcaf.20500
Subject(s) - accounting , valuation (finance) , business , financial accounting , affect (linguistics) , accounting standard , actuarial science , economics , accounting information system , psychology , communication
In late 2007 and early 2008, both the Financial Accounting Standards Board and the International Accounting Standards Board issued separate statements on business combinations. There are a number of similarities between the two new standards, but differences do exist that could lead to dramatically different valuations of assets and liabilities in a merger‐and‐acquisition (M&A) deal. Deal makers must understand the differences in the two standards to decide how to structure any new deal. The authors take an in‐depth look at the issues involved. © 2009 Wiley Periodicals, Inc.
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