PART B

1. Provide examples from the real world for successful and unsuccessful mergers and acquisitions cases in recent years and state the specific reasons behind their success or failure.

Notes:

• Do not provide general reasons behind success or failure [as it will not be considered] Provide only one example for each case.
• Any examples given dated before the year 2001 will not be considered.
• Write your answer in the space provided in the following table:

	Names of the companies And Detailed information about this business combination	Reasons for Success/Failure
Successful Merger/Consolidation/ Acquisition
Unsuccessful Merger/Consolidation/ Acquisition

*** Answers not provided in a tabular format will be disregarded. (15 Marks)

2) There are differences between the IFRS and GAAP (after FASB issued ASU 2017-04 to simplify the accounting for goodwill impairment) regarding the following:

• Assignment/allocation of goodwill. (i.e., The levels at which goodwill is assigned /allocated)
• Impairment of goodwill and test(s) applied and its steps (i.e., Methods of determining impairment of goodwill)
• How impairment loss is recognized and allocated. (i.e., impairment loss[charge] calculation and allocation)
• Amortization and impairment of intangible assets other than goodwill

Discuss The accounting treatment of the preceding points under IFRS only. (Comparison is not required)

• Write your answer in the space provided in the following table:

	IFRS
Assignment/allocation of goodwill
Impairment of goodwill
How impairment loss is recognized and allocated
Amortization and impairment of intangible assets other than goodwill

(You must support your answer in this question with quality and up to date references.)

(15 Marks)

3) If the accountant did not prepare the elimination entry of unrealized profit in inventories at the end of any year, this will affect the consolidated net income in that year and in all subsequent years. Discuss this statement and support your answer with a numerical example. (5 Marks)