MOS 4465A – HAND-IN ASSIGNMENT
This assignment is worth 15%
of your final mark (hand in at class or SSC 4430 or drop box beside
SSC 4434 or SSC4304). For this
assignment, you are permitted to work in teams of two students. Assignment may also be completed
Nature of the Assignment:
Select two public companies
who have undertaken an acquisition of a subsidiary within the past three years. Use publicly-available information on the
companies, such as annual and quarterly reports, company websites, and investor
presentations to research the impact of the acquisitions on both the companies’
financial statements and on their underlying business. The target word length of the paper is
3,000-5,000 words (excluding exhibits).
Your paper should cite all
sources used (Bibliography, end notes). Please
attach copies of relevant extracts of materials used (e.g. relevant pages from
The paper should include a
discussion of the following for each of the two companies selected.
Details of company acquired (10 marks)
consideration (amount and nature)
acquisition done in multiple steps or all at one time?
Allocation of acquisition differential (10 marks)
What was the
amount of the acquisition differential?
What was it
How is it being
Have there been
any goodwill impairment losses or other acquired asset impairment losses
reported since the acquisition?
Accounting Policies (10 marks)
by the company (ASPE, IFRS ,US , Other)
What does the
company disclose regarding its accounting policies for investments in
subsidiaries and other investees?
disclosures has the company provided regarding the timing and expected impact
on their financial statements of conversion to IFRS , if applicable or use of global accounting
policies (non-Canadian companies)
MOS 4465A – HAND-IN ASSIGNMENT (continued)
Impact of Acquisition on Financial Statements: (20 marks)
balance sheet in year of acquisition
income statement in year of acquisition
Impact on cash
flow statement in year of acquisition
acquisition impacted the company’s exposure to foreign currencies (e.g.
revenues/expense streams in foreign currencies, investment in foreign
Note Disclosures on Acquisition: (10 marks)
disclosures pertaining to the acquisition meet Handbook disclosure requirements
for business combinations?
financial statements been provided?
Strategic Rationale for the Acquisition: (20 marks)
company was acquired
on future operations and profitability of company
Conclusion: (25 marks)
Your paper should conclude
with a comparison of the acquisitions made by each company to one another. This should include the following points:
acquisition is likely to have the most significant impact on the consolidated
entity (e.g. size, scope of operations)?
Has one company
provided better quality financial statement information regarding the
acquisition than the other?
acquisition do you believe is more likely to create value for the shareholders
of the parent company / acquired company?