Business combination with negative net assests
Posted: 23 Nov 2023, 13:58
Hello everyone! Please could you help me to find a solution to the issue:
The company A is intended to acquire company B. Company B has negative net assets. The acquisition include cash consideration.
In this case what accounting treatment could be used? Should the difference betweent the negative net assets and cash consideration accounted as a goodwill? Are there any impairement issues?
The company A is intended to acquire company B. Company B has negative net assets. The acquisition include cash consideration.
In this case what accounting treatment could be used? Should the difference betweent the negative net assets and cash consideration accounted as a goodwill? Are there any impairement issues?