answersLogoWhite

0


Best Answer
Direct Combination CostsAlmost all business combinations employ professional services to assist in various phases of the transaction. Examples include target identification, due diligence regarding the value of an acquisition, financing, tax planning, and preparation of formal legal documents. Previously, SFAS 141 included direct combination costs in the cost basis for the acquired firm. The acquisition method considers these costs as payments for services received, not part of the fair value exchanged for the business. Thus, direct combination costs are expensed as incurred
User Avatar

Wiki User

11y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: How are direct and indirect costs accounted for when applying the acquisition method for a business combination?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

Business Acquisition ?

form_title= Business Acquisition form_header= Questions about your business acquisition? Talk to the experts. What business are you acquiring?*=_ [50] What is the cost of the acquisition?*=_ [50] How long have the talks been about the acquisition?*=_ [50]


Who manages business acquisition financing?

Business acquisition financing is usually managed by the accountants of the business that is involved in the actual acquisition. It can also be managed by outside consultants.


What is bolt on acquisition?

a business jargon for a company that fits naturally in the existing business line or strategy in an acquisition


What Does The Term Acquisition Financing Mean?

Acquisition financing is the money provided a buyer of a business to pay for the purchase. That is distinct from the financing needed to operate the business once it is acquired. Often, when a buyer is acquiring a business, it will require both acquisition financing (which is typically longer term financing) and financing to meet the day-to-day needs of the business following the acquisition.


How Can The Business Loan Proceeds Be Used?

Loan can be used for permanent working capital, equipment, automobiles, business acquisition, and real estate acquisition. Business loanscan also be used for construction for owner-occupied businesses.


What is the principle that requires every business to be accounted for separately and distinctly from its owner or owners is know as the what?

Business Entity Principle


What does a talent acquisition firm do?

A talent acquisition firm finds employees for a business with the required skills to do that job. Finding the talent is not easy and many businesses now use talent acquisition.


Where can I find information on how to get financing for a business acquisition?

Here's a company that will provide financing for a business acquisition: http://www.globaleasing.com/financing-acquisition.html A local bank can help you with financing options for a business investment. Contact a loan officer for more information.


What is the process of business acquisition?

Business acquisition is the process of acquiring a company to build on strengths or weaknesses of the acquiring company. The end result is to grow the business in a quicker and more profitable manner than normal organic growth would allow.


What is acquistion?

An acquisition is when a business acquires another business. Many businesses do this in order to gain more customers in their industry.


What do you mean by capex?

capital expenditure is a Increase or acquisition of Assets to business or increased earnings in business is called capital expenditure


What is the process of acquisition?

Business acquisition is the process of acquiring a company to build on strengths or weaknesses of the acquiring company. The end result is to grow the business in a quicker and more profitable manner than normal organic growth would allow.