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Bonbons Hansel et Gretel inc.
Author(s) -
Martel Louise,
Paul Diane
Publication year - 2015
Publication title -
accounting perspectives
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.238
H-Index - 17
eISSN - 1911-3838
pISSN - 1911-382X
DOI - 10.1111/1911-3838.12041
Subject(s) - goodwill , humanities , art , business , finance
Bonbons Hansel and Gretel inc. ( BHGI ) has acquired all shares of Les délices de Fée Dragée ( LDFD ). That French private company has made its mark in 50 years with a secret recipe of natural licorice candy that consumers absolutely love. BHGI now possesses an advantage over its domestic competitors with this recipe and the client list of LDFD , but the French factory will need to be refurbished in ten years. During due diligence, BHGI learns that a lawsuit was filed against LDFD . It is time to account for the acquisition and to determine the amount of goodwill. Headaches are anticipated when assessing the fair value of assets acquired, especially when considering the various possible assessment methods and assumptions to be used as input data for valuations approaches.