Purchase/Acquisition of a Business
What is the Purchase/Acquisition of a Business?
The Purchase/Acquisition of a Business represents the cash payment made to acquire businesses or subsidiaries for a certain period. There will be instances wherein the cash paid is different from the net asset value of the acquired business and will depend on both parties’ agreement.
- Cash acquired in the acquisition (as a deduction);
- Goodwill resulting from the acquisition of subsidiaries;
- Capital expenditures resulting from the acquisition of subsidiaries;
- Discount on acquisition of subsidiaries; and
- Acquisition of minority interest (including those reported as Financing cash flows).