Historical Perspectives on Accounting for M&A

41 Pages Posted: 15 Feb 2016

See all articles by Amir Amel-Zadeh

Amir Amel-Zadeh

University of Oxford - Said Business School

Geoff Meeks

University of Cambridge - Judge Business School

Jaqueline Meeks

University of Cambridge - Centre for Development Studies

Date Written: 2015

Abstract

This paper attempts to tease out some of the reasons why the history of M&A accounting has been so fraught. It compares the different M&A accounting regimes which have been tried over time in UK, US and international standards. It illustrates the quantitative impact of alternative accounting regimes on financial statements. It asks whether the resulting numbers make any difference to decisions and behaviour. It charts the rising scale of M&A expenditures which have accompanied the different accounting regimes. And it suggests that a number of historical developments have intensified the challenges posed by accounting for M&A – developments in firms’ investment choice between M&A or new tangibles, in the role of intangibles, in means of payment for M&A, in stock market price movements, in the synergies created by M&A, and in “creative accounting.”

Keywords: M&A accounting, intangibles, M&A financing, creative accounting

JEL Classification: G24, K22, L25, M41, M48

Suggested Citation

Amel-Zadeh, Amir and Meeks, Geoff and Meeks, Jaqueline, Historical Perspectives on Accounting for M&A (2015). Available at SSRN: https://ssrn.com/abstract=2732253 or http://dx.doi.org/10.2139/ssrn.2732253

Amir Amel-Zadeh

University of Oxford - Said Business School ( email )

Park End Street
Oxford, OX1 1HP
Great Britain

Geoff Meeks (Contact Author)

University of Cambridge - Judge Business School ( email )

Trumpington Street
Cambridge, CB2 1AG
United Kingdom
+44 (0) 1223 764226 (Phone)
+44 (0) 1223 339701 (Fax)

Jaqueline Meeks

University of Cambridge - Centre for Development Studies ( email )

7 West Road
2nd floor, Alison Richard Building
Cambridge, CB3 9DT
United Kingdom

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