Date:26.11.2016, 16:17 One fundamental difference between combinations of not-for-profit entities and combinations involving only businesses has significant financial reporting implications. Because a not-for-profit entity lacks the type of ownership interests that business entities have, negotiations in not-for-profit mergers and acquisitions generally focus on the furtherance for the benefit of the public of the mission, governance, and programs of the entity, rather than. While that's not a good deal for the guy who owns a few shares of the purchasing company, if you own the company being bought, this can be another win for you. (Exceptions are made to reflect a consistent method of accounting for the new entity if the merging entities used different methods and to eliminate the effects of intraentity transactions.) This Statements guidance on applying the carryover method improves on Opinion 16s guidance on applying the pooling method in several ways. Analyze Financial Reports Even though there aren't a lot of people who enjoy reading financial statements, examining key information for each company involved in the merger is a good idea. Look over and analyze the company if you're not familiar with it, and determine for yourself if it is a good investment decision. It may not be applied to mergers or acquisitions before those dates. Because the following items were not effective for not-for-profit entities upon their initial effective dates, this Statement also provides an effective date for them: Statement 142s requirements on subsequent accounting for goodwill and other intangible assets acquired in an acquisition by a not-for-profit entity (Statement 142 refers to.
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