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Reverse Acquisitions
Reverse acquisition transactions are commonly used by both Capital Pool Companies (CPCs) to complete their qualifying transaction and Private Companies who wish to obtain a stock exchange listing without having to go through the Initial Public Offering (IPO) process. There are two methods of accounting that need to be considered when a reverse acquisition takes place as the transaction would either fall under IFRS 2 Share based payment or IFRS 3 Business combinations.
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Accounting for acquisitions, including reverse acquisitions, can often be complex. This complexity can range from determining the appropriate acquirer/acquiree to determining what periods need to be presented and identifying the correct Generally Accepted Accounting Principles that should be used for each period. Both private and public companies would be advised to seek advice from an accounting advisor when they are contemplating an acquisition. This article has b een prepared for informational purposes only and is not intended for any other purpose. We do not assume any responsib ility or liab ility for losses occasioned b y you in reliance on this information. We would b e pleased to discuss with you the issues raised within the context of your particular circumstances. Please contact your local MNP Pub lic Companies advisor.
www.mnp.ca/en/media-centre/library/2011/10/14/accounting-for-a-reverse-acquisition
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Keywords | Accounting | Accounting Standards | ASPE | Assurance | Capital Pool Companies | GAAP | IFRS | International Financial Reporting Standards | IPO | MNP | Private Enterprises | Public
Companies | Public Company | Reverse Acquisitions
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www.mnp.ca/en/media-centre/library/2011/10/14/accounting-for-a-reverse-acquisition
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