23 Jun 2017
"How investors analyse and what managements need to explain, when M&A happened?" We discussed this issues in Japan, with some accounting standard setters.
We have been discussing about comparability issue and line item classification issue from users’ point of view in the past workshops. At the last workshop (https://www.arx.cfa/up/post/3375/20170206_IFRSXBRLWS10_E.pdf) , we discussed on whether “share of profit/loss of associates” is “operating” or “investing” may differ by company or its business, focusing on the point that “What is really comparable? Does same account name mean same substance? Which is same in substance?”.
The way of business for companies are changing nowadays, that we should focus on the point that more M&A is happening in place of building factory and hiring people in old times. So we focused on the point how investors should evaluate companies’ value in acquisition and what companies need to explain in our discussion.