Solutions for Advanced Financial
Accounting - C243 (1st edition by
Nathalie Johnstone)
Special Purpose Entity (SPE) - ANSA financing vehicle that is not a substantive operating entity,
usually created for one single purpose - can be a corporation, trust or partnership
Spin-Off - ANSOccurs when the ownership of a newly created or existing subsidiary is
distributed to the parent's stockholders surrendering any of their stock in the parent company.
Therefore, the company divests itself of the subsidiary because it is owned by the company
shareholders
Split-Off - ANSOccurs when the subsidiary's shares are exchanged for shares of the parent,
thereby leading to a reduction in the parent company's outstanding shares
Business Combination - ANSOccurs when an acquirer obtains control of one or more
businesses
Merger - ANSA business combination in which the acquired company's assets and liabilities are
combined with those of the acquiring company. In essence, the acquiring company "swallows"
the acquired.
Acquisition Method - ANS
Bargain Purchase - ANS
Consolidated Financial Statements - ANS
Control - ANS
Differential - ANS
Goodwill - ANS
Liquidated - ANS
Measurement Period - ANS
Minority Interest - ANS
Accounting - C243 (1st edition by
Nathalie Johnstone)
Special Purpose Entity (SPE) - ANSA financing vehicle that is not a substantive operating entity,
usually created for one single purpose - can be a corporation, trust or partnership
Spin-Off - ANSOccurs when the ownership of a newly created or existing subsidiary is
distributed to the parent's stockholders surrendering any of their stock in the parent company.
Therefore, the company divests itself of the subsidiary because it is owned by the company
shareholders
Split-Off - ANSOccurs when the subsidiary's shares are exchanged for shares of the parent,
thereby leading to a reduction in the parent company's outstanding shares
Business Combination - ANSOccurs when an acquirer obtains control of one or more
businesses
Merger - ANSA business combination in which the acquired company's assets and liabilities are
combined with those of the acquiring company. In essence, the acquiring company "swallows"
the acquired.
Acquisition Method - ANS
Bargain Purchase - ANS
Consolidated Financial Statements - ANS
Control - ANS
Differential - ANS
Goodwill - ANS
Liquidated - ANS
Measurement Period - ANS
Minority Interest - ANS
