IDEAS home Printed from https://ideas.repec.org/a/eee/joaced/v29y2011i2p122-141.html
   My bibliography  Save this article

Accounting for mergers and reverse mergers: An instructional assignment using SEC Form 10-K and S-4 disclosures

Author

Listed:
  • Schoderbek, Michael

Abstract

This instructional assignment explores two real-world business combinations, focusing on contextual factors surrounding the merger as well as accounting recognition by the legal acquirer. The business combinations studied in this assignment are Exxon Mobil Corporation’s (2010) acquisition of XTO Energy Inc. and the 2010 reverse merger between RRI Energy, Inc. and Mirant Corporation. Students must utilize disclosures in Forms 10-K and S-4 to: (1) investigate the reasons behind the merger, (2) examine the criteria used for determination of the “accounting acquirer” (in the case of RRI Energy and Mirant), and finally (3) prepare the entries to combine the firms at the time of merger. Students must learn the basics of reverse-acquisition accounting from relevant authoritative pronouncements as well as study the legal environment surrounding business combinations. Targeted for Advanced Accounting courses, this instructional assignment meets calls from the accounting profession and the Accounting Education Exchange Commission (1990) for instructors to integrate real-world problems that capture complex business transactions into the course curriculum.

Suggested Citation

  • Schoderbek, Michael, 2011. "Accounting for mergers and reverse mergers: An instructional assignment using SEC Form 10-K and S-4 disclosures," Journal of Accounting Education, Elsevier, vol. 29(2), pages 122-141.
    • Handle: RePEc:eee:joaced:v:29:y:2011:i:2:p:122-141
    DOI: 10.1016/j.jaccedu.2012.02.003
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0748575112000048
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jaccedu.2012.02.003?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Singh, Anil & Mangalaraj, George & Taneja, Aakash, 2014. "Addressing business needs: A creative module for teaching data macros in an accounting information systems course," Journal of Accounting Education, Elsevier, vol. 32(1), pages 61-75.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:joaced:v:29:y:2011:i:2:p:122-141. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-accounting-education .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.