[Comments on Allowability of Costs Incident to Mergers and Other Business Combinations]

B-224782.7: Published: Feb 29, 1988. Publicly Released: Feb 29, 1988.

Additional Materials:

Contact:

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

GAO commented on the allowability of costs incident to mergers or other business combinations. It was determined that: (1) the two methods of accounting for capital asset costs following a merger or other business combination were the purchase method and the pooling-of-interests method; (2) under the purchase method, one business acquires another business at its cost; (3) under the pooling method, two businesses exchange equity securities and carry forward the costs of assets to the combined corporation; (4) the government should limit the book value of an asset to its value when first devoted to government contracting, less accumulated depreciation; and (5) the government should not revalue assets on a case-by-case basis unless a business combination would result in increased benefits to the government.

Apr 17, 2018

Apr 5, 2018

Apr 3, 2018

Mar 30, 2018

Mar 9, 2018

Feb 15, 2018

Jan 31, 2018

Nov 16, 2017

Looking for more? Browse all our products here