Accounting for M&a - Uses and Abuses of Accounting in Monitoring and Promoting Merger

Zusatztext "Accounting for M&A is a must read for M&A practitioners and academics alike. By bridging the divide between theory and practice, Amel-Zadeh and Meeks do a masterful job of bringing clarity to an often opaque and complex aspect of the deal process. Seasoned transaction professionals as well as students of M&A will gain key insights and knowledge to better project, measure, track and report transaction performance, helping to avoid becoming another transaction failure statistic." — Dr Tim Galpin, Senior Lecturer in Strategy and Innovation, Saïd Business School, University of Oxford, and co-author of The Complete Guide to Mergers & Acquisitions."Accounting for M&A provides students and practitioners alike with valuable insights into the accounting challenges related to M&A transactions. It outlines how acquiring firms exploit reporting discretion to promote acquisitions, documents how standard-setters have grappled with conflicting views on how to account for M&A and discusses the benefits and pitfalls when using accounting information to measure the success of M&A. The book draws from a variety of evidence presenting case material, standard-setters’ interviews and econometric analyses. The book will be of particular interest to anyone involved in M&A and to graduate students interested in researching and understanding the role of accounting in M&A." — Prof. Martin Glaum, Professor of International Accounting, WHU – Otto Beisheim School of Management."A tour de force in bringing together a wide range of literature and research approaches to untangle the thicket of empirical results, theoretical arguments and historical influences on the development of accounting standards, that surround one of the most controversial arenas of corporate activity. It is the arena wherein the largest investments of shareholders’ money, as well as leading executives’reputations and the future livelihood of their workforces and value for their customers (and suppliers)—let alone wider social and environmental impacts—are most at stake. This clearly written book provides valuable insights for practitioners and policymakers as well as in-depth understanding for students of accounting and finance and for academic researchers. It emphasises the vital importance of the need to continue to improve accountability and accounting discipline in this arena and shows that the challenges affect not only Western capitalist stockmarkets and Western companies but also evaluation of Japanese approaches and of the reforms that have been undertaken in China’s restructuring of its industries." — Richard Macve, Emeritus Professor of Accounting, LSE."I am so much impressed by this book. This book has covered many accounting aspects of M&A. It identifies the contemporary problems of M&A accounting and articulates where these problems come from. Among other things I would like to emphasise the usefulness of the contents of this book to understanding the Discussion Paper "Business Combinations – Disclosures, Goodwill and Impairment" issued by IASB in March 2020. In addition, I would like to emphasise three other features of this book.Firstly, the interview with the two standard-setters (chapter 4) covers not only M&A accounting but also many other IFRS and other aspects of IASB’s activities such as the relationship with the Financial Accounting Standards Board of the US. Some of the items picked up here are even new to me even though I was an IASB Board member at the same time with them.Secondly, we can understand that the current accounting for M&A, which requires non-amortisation and an annual impairment test for purchased goodwill, is a result of political compromise in the US and that accounting has been incorporated into IFRS. There have been different accounting methods that were required or allowed for purchased goodwill in different jurisdictions. Therefore, we can learn that the current accounting for M&A is not one that is set in sto...

Sommario

1 Introduction PART I Accounting procedures 2 An outline of issues in accounting for M&A 3 Seventy years of accounting standards for M&A 4 Developing new accounting standards for M&A: a standard-setters' perspective 5 Stewardship and value-relevance in accounting for the depletion of purchased goodwill PART II Managing perceptions of performance around M&A 6 Stock prices and earnings management around M&A transactions 7 Earnings forecasts accompanying a bid 8 Managing earnings through M&A PART III Using accounts to measure the impact of M&A on performance 9 Measuring post-acquisition performance: introduction 10 An early attempt to use accounting data to estimate the impact of M&A on financial performance 11 The impact of M&A on performance: alternative measures of rates of profit 12 Operating performance improvements after corporate takeovers: fact or fallacy? 13 The financial performance of acquired companies in the Chinese stock market PART IV Concluding remarks 14 Continuing challenges in accounting for M&A

Relazione

"Accounting for M&A is a must read for M&A practitioners and academics alike. By bridging the divide between theory and practice, Amel-Zadeh and Meeks do a masterful job of bringing clarity to an often opaque and complex aspect of the deal process. Seasoned transaction professionals as well as students of M&A will gain key insights and knowledge to better project, measure, track and report transaction performance, helping to avoid becoming another transaction failure statistic." - Dr Tim Galpin, Senior Lecturer in Strategy and Innovation, Saïd Business School, University of Oxford, and co-author of The Complete Guide to Mergers & Acquisitions.
"Accounting for M&A provides students and practitioners alike with valuable insights into the accounting challenges related to M&A transactions. It outlines how acquiring firms exploit reporting discretion to promote acquisitions, documents how standard-setters have grappled with conflicting views on how to account for M&A and discusses the benefits and pitfalls when using accounting information to measure the success of M&A. The book draws from a variety of evidence presenting case material, standard-setters' interviews and econometric analyses. The book will be of particular interest to anyone involved in M&A and to graduate students interested in researching and understanding the role of accounting in M&A." - Prof. Martin Glaum, Professor of International Accounting, WHU - Otto Beisheim School of Management.
"A tour de force in bringing together a wide range of literature and research approaches to untangle the thicket of empirical results, theoretical arguments and historical influences on the development of accounting standards, that surround one of the most controversial arenas of corporate activity. It is the arena wherein the largest investments of shareholders' money, as well as leading executives'reputations and the future livelihood of their workforces and value for their customers (and suppliers)-let alone wider social and environmental impacts-are most at stake. This clearly written book provides valuable insights for practitioners and policymakers as well as in-depth understanding for students of accounting and finance and for academic researchers. It emphasises the vital importance of the need to continue to improve accountability and accounting discipline in this arena and shows that the challenges affect not only Western capitalist stockmarkets and Western companies but also evaluation of Japanese approaches and of the reforms that have been undertaken in China's restructuring of its industries." - Richard Macve, Emeritus Professor of Accounting, LSE.
"I am so much impressed by this book. This book has covered many accounting aspects of M&A. It identifies the contemporary problems of M&A accounting and articulates where these problems come from. Among other things I would like to emphasise the usefulness of the contents of this book to understanding the Discussion Paper "Business Combinations - Disclosures, Goodwill and Impairment" issued by IASB in March 2020.
In addition, I would like to emphasise three other features of this book.
Firstly, the interview with the two standard-setters (chapter 4) covers not only M&A accounting but also many other IFRS and other aspects of IASB's activities such as the relationship with the Financial Accounting Standards Board of the US. Some of the items picked up here are even new to me even though I was an IASB Board member at the same time with them.
Secondly, we can understand that the current accounting for M&A, which requires non-amortisation and an annual impairment test for purchased goodwill, is a result of political compromise in the US and that accounting has been incorporated into IFRS. There have been different accounting methods that were required or allowed for purchased goodwill in different jurisdictions. Therefore, we can learn that the current accounting for M&A is not one that is set in stone (Chapter2).
Thirdly, there is an issue whether the purposes in financial reporting of stewardship and value-relevance make a difference to the information that should be provided to the users of financial statements (Chapter 5). This is a long-lasting argument and I am pleased that this book clearly articulates the issue and provides an example of the information that only stewardship requires. I strongly appreciate the high quality of the book and believe it should attract many readers who are interested in M&A accounting." - Tatsumi Yamada, Specially Appointed Professor of Chuo University; Outside Director, Mitsubishi Chemical Holding Corp'n; Former Member of the International Accounting Standards Board; and former Partner of KPMG AZSA LLC.

Dettagli sul prodotto

• Autori: Geoff Amel-Zadeh Meeks
• Con la collaborazione di: Amir Amel-Zadeh (Editore), Amel-Zadeh Amir Amel-Zadeh (Editore), Meeks Geoff Meeks (Editore), Geoff Meeks (Editore), Meeks Geoff (Editore)
• Editore: Routledge Academic
• Lingue: Inglese
• Formato: Tascabile
• Pubblicazione: 28.05.2020
• EAN: 9780367492373
• ISBN: 978-0-367-49237-3
• Pagine: 332
• Serie: Routledge Studies in Accounting
• Categorie: Scienze sociali, diritto, economia > Economia > Altro; Accounting, BUSINESS & ECONOMICS / Accounting / General, BUSINESS & ECONOMICS / Corporate Finance / General, Corporate Finance, BUSINESS & ECONOMICS / Mergers & Acquisitions, Takeovers, mergers and buy-outs, Takeovers, mergers & buy-outs