Business Combinations



Business Combinations

Introduction

The purpose of this study is to improve the relevance, reliability and comparability of the information that a business combination of Glanbia PLC with Fyffes PLC affects the reporting entity of Glanbia in its financial statements. In this view, standards are established to know how the Glanbia recognizes the financial reports that include the recognition of the value of its liabilities and tangible assets while acquiring Fyffes.

Determining the Acquisition Date

Glanbia shall determine the date of acquisition as the date on which Glanbia gets control of the Fyffes is generally the date on which Glanbia legally transfers the consideration, acquires the assets and assumes the liabilities of Fyffes. However, Glanbia might obtain control earlier or later than the date of settlement. Date of acquisition on which Glanbia obtained control of the Fyffes prior to the settlement date. The Licensee shall, when determining the acquisition date to consider all relevant facts and circumstances.

Conditions for Recognition

The annual report of Glanbia should contain comprehensive, balanced and comprehensive information on the development of performance activities and the current economic situation of Glanbia. The annual report of Glanbia contains the following information:

complete set of financial statements and related disclosures, including the audit report

information about facts that occurred after the balance sheet date and are significant (determination of materiality limit the internal affairs of the entity)

information on the expected development of the entity

information about activities in the area of ??research and development

information about activities in the area of ??environmental protection and labor relations

information on whether the entity has a foreign branch

Glanbia is part of a business according of the Commercial Code and has entered into a control agreement; the entity shall prepare detailed information on association between Glanbia and Fyffes. This report on relations must be prepared within three months after the reporting period, and if the entity has an obligation to prepare an annual report, this report is the annual report. Glanbia has an obligation to audit, must be of the information contained in the report on relations also audited.

In order to assets purchased and liabilities accepted distinguished at the acquisition strategy, the date of acquisition must meet the meanings of assets and liabilities in the framework for the presentation and preparation of the financial statements. For instance, Glanbia needs expenses caused in association with the execution of its want to passageway a movement of the Fyffes or to end the occupation of ...