Accounting for Mergers & Acquisitions and Valuation — DU B.Com. (Hons.) Previous Year Question Papers

1. (a) "Mergers and Acquisitions (M&A) play a significant role in the corporate world, often acting as a catalyst for growth, innovation, and value creation". (b) Analyze how mergers and acquisitions can be used to create value for stakeholders. Discuss strategies for ensuring successful value creation through (a) Discuss the importance of financial statements in mergers and acquisitions. How do financial statements influence decision-making and valuation in M&A transactions? (9) 2. (a) What is the Discounted Cash Flow (DCF) Method? Discuss the role of free cash flow projections, discount rates, and terminal value in the DCF analysis. (9) (b) Define Internal Rate of Return (IRR). How do you calculate IRR for a project-or business acquisition? Discuss its strengths and weaknesses as a decision-making tool. (9) (a) Describe the Book Value Method for valuing a business. How does it differ from other valuation methods, and what are its limitations?. (9) (b) In the context of Mergers and Acquisitions (M&A), explain the importance of due diligence. What are the key areas of due diligence, and how do they impact the negotiation process? (9) (BTA)? How does the accounting for a business transfer differ from other types of acquisitions? (9) - (b) Explain the accounting treatment for amalgamation in the nature of a purchase. How does this method affect the recognition and measurement of assets, liabilities, and goodwill in the consolidated financial statements? (9) (a) Explain the accounting treatment of amalgamation that occurs after the balance sheet date. How should the amalgamation be reflected in the financial statements of the acquiring company for the period in which it occurs? (9) (b) Explain the treatment of acquisition-related transaction costs under Ind AS 103. How are transaction costs, such as legal, advisory, and due diligence costs, accounted for in the acquiring company's financial 4. (a) Explain the process of identifying the acquirer in a business combination. What factors are considered to determine the acquirer, and how is this relevant to the application of IFRS 3? (9) (b) What is. Non-Controlling Interest (NCI)? Discuss the different approaches to measuring NCI and the implications for consolidated financial statements. (9) (a) Discuss the measurement principle under IFRS 3, which requires acquired assets and liabilities to be measured at fair value. What are the exceptions to this principle? Explain how these exceptions impact the overall valuation in a business combination.. 19) (b) Compare the key provisions of Indian GAAP and IFRS 3. in relation to accounting for mergers and acquisitions. (9) 5. (a) Explain the key provisions under the Companies Act, 2013 that govern mergers and acquisitions (M&A). Discuss the role of the National Company Law Tribunal (NCLT) in M& A transactions. (9) (b) Define 'Demerger' and explain the legal and tax framework under the