With the downturn in the economy, there have been opportunities in the natural resource sector for strategic acquisitions. Those considering acquisitions should note that the rules for business combinations under generally accepted accounting principles have changed in 2009. Some of the main changes include:
• Expensing all acquisition related costs
• Assigning value to noncontrolling interests
• Recognition in earnings of any bargain purchase price
• Acquisition date established at the date of change in control
Dean Dorton Ford, PSC has the resources to help navigate you through the complexities of acquisition accounting. DDF has accounting, tax and valuation specialists who can ensure your accounting is sound and accurate. DDF has experience in assigning values to proven coal reserves and oil and gas reserves. The DDF professionals have extensive experience in working with engineers and other third party experts who can provide fair value estimates in complex areas like asset retirement obligations. Additionally, DDF can help you identify those hard to identify intangible values, such as sales contract values, which require separate valuations. Whether you have completed an acquisition or are contemplating an acquisition, please contact DDF to help walk you through the steps of acquisition accounting.
Bill Kohm, Director of Assurance Services