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Compaq Computer Acquisition of DEC Creative M&A Accounting Fair Value Balance Sheet of Digital Assets Liabilities Stock issued Equity Options issued Cash paid Total Assets acquired: Cash acquired Short-term Compaq cash Long-term Price paid = Total Total Less negative goodwill Adjusted assets acquired Liabilities assumed Bypassed the income statement “Purchase” price IPR&D written-off Adjusted net assets 5,781 Dr Acquisition value (equity) Dr Restructuring expense Cr Accrued restructuring PP&E IPR&D Proven R&D Employee separation Customers Office closures Trademarks Relocation of employees Other assets Terminations Deferred taxes Sub-total Total 10,372 (4,106) Spent Total 1,734 Why would Compaq use such creativity? What other issues are evident in the 10-Q for 1998? Financial Statement Analysis
"Compaq Computer Acquisition of DEC"