M&A Quiz

When purchasing a company, the buyer should treat transaction fees (advisory fees and legal fees, for example) in which of the following ways, according to both U.S. Generally Accepted Accounting Principles and International Financial Reporting Standards?

A) Transaction fees should be added to the purchase price, and included in the calculation of Goodwill.

B) Transaction fees should be expensed to operations in the period in which they were incurred.

C) Transaction fees should be recorded to Other Comprehensive Gains or Losses in the buyer’s financial statements

Reveal Answer

B) Correct. Under both GAAP and IFRS, transaction fees are expensed rather than capitalized.

What is the M&A Professional Certificate?

Comprehensive analysis of the major facets of the Mergers & Acquisitions industry and the skills engaged in executing all areas of transactions from pre to post-merger integration.

“NYIF instructors are very experienced professionals. They have a lot of knowledge in the areas they are teaching, and they use a lot of case studies so it’s a very practical class.”


August 2018, M&A Professional Certificate

About The New York Institute of Finance

The New York Institute of Finance (NYIF) is a global leader in professional training for financial services and related industries. NYIF courses cover everything from investment banking, asset pricing, insurance and market structure to financial modeling, treasury operations, and accounting. The New York Institute of Finance has a faculty of industry leaders and offers a range of program delivery options, including self-study, online courses, and in-person classes. Founded by the New York Stock Exchange in 1922, NYIF has trained over 250,000 professionals online and in-class, in over 120 countries.

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