My organisation has acquired a set of contracts (trade debtors, accrued revenue, deferred revenue) and the staff servicing these contracts from another business (via new entity which we 100% own). Can anyone provide any advice or insight on asset acquisition accounting for the transaction (within the new entity)? Through some research I believe that the transaction cost and any transaction fees should be allocated to the acquired assets based on their fair value, however I'm not sure how this works in practice. If anyone could help me understand this at a basic level (debits and credits) that would be hugely appreciated. Thanks in advance for any help.
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Can anyone provide any advice or insight on asset acquisition accounting for the transaction (within the new entity)?
An accountant can.
Other professional bodies are available.
https://www.accountingweb.co.uk/any-answers/how-to-use-any-answers
“If you intend to plan a course of action based on what you read in here, you should instead be taking professional advice.”
“They are not here to provide free accounting advice.”