• One corporation obtains operating control over the productive facilities of another entity by acquiring a majority of its outstanding voting stock.
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4.2 The Legal Form of Business Combinations
Acquisition occurs when Textbook P59
• One corporation acquires the productive assets of another business entity and integrates those assets into its own operations, or
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企业合并的概念
中国财政部2006年2 月颁布的《企业会 计准则第20号—— 企业合并》对企业 合并的定义是：企 业合并，是指将两 个或者两个以上单 独的企业合并形成 一个报告主体的交 易或事项。
企业合并的实 质是控制，而 不是法律实体
的解散。
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4.1 The Accounting Concept of Business Combinations
Business combinations According to FASB Statement No. 141:
For purposes of applying this statement, a business combination occurs when an entity acquires net assets that constitute a business or acquires equity interests of one or more other entities and obtains control over that entity or entities.
4.1 The Accounting Concept of Business Combinations
Control is the power to govern the financial and operating policies of an or business so as to obtain benefits from its activities. P58-59
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4.1 The Accounting Concept of Business Combinations
Business combinations Textbook P58 According to IFRS3 :
A business combination is a transaction or other event in which an acquirer obtains control of one or more business.
美国财务会计准则委员 会（FASB）2001年6月 颁布第141号公《企业合 并》指出：当一个主体 取得了构成一项业务的 净资产，或者取得了一 个或几个其他主体的权 益并取得对后者的控制 时，就发生了企业合并。
国际准则委员会（IASB） 2004年3月颁布的第3号国 际财务报告准则《企业合 并》对企业合并定义如下： 企业合并就是将几个独立 的企业合并形成一个报告 主体的交易或事项。
the legal and accounting perspectives. • Introduce concepts of accounting for business combinations • Emphasizing the purchase method
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Chapter 4 Business Combinations

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Learning Objectives
• The economic motivations underlying business combinations • The alternative forms of business combinations, from both
a. power over more than one-half of the voting rights of the other entity by virtue of an agreement with other investors.
b. power to govern the financial and operating policies of the other entity under a statute or an agreement.
c. power to appoint or remove the majority of the members of the board of directors or equivalent governing body of the other entity.
d. power to cast the majority of votes at meetings of the board of directors or equivalent governing body of the other entity.
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4.2 The Legal Form of Business Combinations
The term merger and consolidation are often used as synonyms for acquisitions.