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JH12345
Contributor

Joined: 12 Aug 2009
Online Status: Offline
Posts: 96

Posted: 15 Oct 2009 at 12:17 \| IP Logged

Hello ,all.

I was reading through the forum and noticed some people saying the purchase method isn't used anymore. I was wondering what the major difference between the purchase method and Acquisition method is? Is it just the fact that you don't realize and extraordinary gain unless the it is unusual or infrequent? I have 2008 becker and I don't see the acquisition method in here anywhere.

__________________
BEC:7/9/09-80
Reg:8/18/09-83
FAR: 10/22-76
Aud:Nov. 27=72. Retake May 28

Zeratul
Major Contributor

Joined: 11 Jun 2009
Online Status: Offline
Posts: 987

Posted: 15 Oct 2009 at 12:25 \| IP Logged

I would suggest you either purchase or borrow Wiley 2009 FAR ($40 on Amazon, you may be able to find it in your local library), or purchase Yaeger's 141R update. The differences are important enough you'll want to have studied them from an updated source.

joecjr
Major Contributor

Joined: 10 Oct 2009
Location: United States
Online Status: Offline
Posts: 974

Posted: 17 Oct 2009 at 19:41 \| IP Logged

Purchase method is now acquisition method. Go to your local bookstore and look at post july wiley 2009 far for 141R. There are changes in treatment of business acquisition costs, terminology, etc. Wiley has the new requirements in its own section under the business combination module.

__________________
FAR [83] 1109 Yaeger
AUD [90] 0510 Roger CPA
BEC [76] 0810 Yaeger/Gleim
REG [80] 1110 Yaeger
Done 12/16/2010
1year & 4months

Philadelphia, PA
joey_cjr@yahoo.com

studyfreak
Major Contributor

Joined: 26 Sep 2009
Location: United States
Online Status: Offline
Posts: 481

Posted: 20 Oct 2009 at 10:27 \| IP Logged

In reading the Wiley text on SFAS 141R, I am thinking that the acquisition method is very similar to the good old purchase method. The only difference seems to be with changing "parent/subsidiary" to "acquiror/acquiree" and the treatment of a bargain purchase as a gain instead of charging negative goodwill against non-current assets. Any other differences I'm not seeing?

__________________
REG - 91 - Gleim
FAR - 92 - Yaeger/Wiley
BEC - 83 - Yaeger/Wiley
AUD - 96 - Wiley/Gleim CD
Actively Licensed CPA - Michigan

joecjr
Major Contributor

Joined: 10 Oct 2009
Location: United States
Online Status: Offline
Posts: 974

Posted: 20 Oct 2009 at 11:23 \| IP Logged

that's what I got out of it too, and minority interest is now controlling interest, terminology has changed, bargain purchase instead of negative goodwill, registration fees reduce APIC, consulting fees are period expense.

__________________
FAR [83] 1109 Yaeger
AUD [90] 0510 Roger CPA
BEC [76] 0810 Yaeger/Gleim
REG [80] 1110 Yaeger
Done 12/16/2010
1year & 4months

Philadelphia, PA
joey_cjr@yahoo.com

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