Acquistion Analysis

The process of acquisition analysis (also known as due diligence procedure) is often conducted in order to ascertain the profitability of a certain transaction. In the present situation, several factors shall be accentuated: first and foremost, the presence of the pattern (market value $ 45 000 , which besides has not been classified as an asset) and the marker value of the assets of the firm in contrast with the current liabilities of the firm. Having conducted a profound analysis it can be deducted that the total value of the assets exceed the total amount of the liabilities of the company, even considering the pending litigation and the damages which resulted from this litigation. Business Combination Valuation Entries and Pre-Acquisition Worksheet Journal Entries 30 June 2011Consolidation worksheet for Olympus 30 June, 2012 Account NameOlympus LtdCash$90 620Receivables36 000Dividend Receivable8 000Inventory72 000Available-for-Sale Financial Assets90 250Loan Receivable – Delphi Ltd35 000Shares in Delphi Ltd360 000Deferred tax assets32 080Land125 000Buildings120 000Plant450 000Delivery Truck 75 000Office Furniture15 000Goodwill28 000Cost of Sales1 440 100Amortisation and Depreciation60 000Impairment loss-CA of non-current assets sold4 500Damages expense-Other expenses63 000Income tax expense68 100Dividend paid12 000Dividend declared6 000Transfer to general reserve 10 000Total debit balances3 200 650 Share capital450 000General Reserve80 000Plant Maintenance Reserve-Available-for-Sale Financial Assets Reserve40 000Retained earnings (1/7/11)89 500Dividend Payable6 000Accounts Payable37 000Loan Payable – Olympus Ltd-Loan Payable (due 1/7/15)100 000Current Tax Liability65 200Deferred Tax Liability19 250Annual Leave Entitlements50 000Sales Revenue1 830 000Dividend Revenue23 500Proceeds on sale of non-current assets5 000Other Revenue62 900Transfer from plant maintenance reserve-Accumulated impairment – Goodwill-Accumulated depreciation – Buildings56 000Accumulated depreciation – Plant252 000Accumulated depreciation – Office Furniture6 200Accumulated depreciation – Delivery Truck 28 100Total credit balances$3 200 …