Merger accounting template
An Excel template for combining two companies under common control – for example when a family or an individual who owns both companies puts one under the other – using merger accounting (the pooling of interests method).
What it does
Confirms the conditions: the same party controls both companies before and after, and that control is not transitory (combinations under common control are outside IFRS 3).
Combines the companies at book value – no fair values and no goodwill – with a merger reserve in equity for the difference between the consideration and the transferred company's share capital and share premium.
Restates the comparative year as if the companies had always been combined.
Aligns accounting policies and eliminates intragroup balances, trading, unrealised profit and dividends; merger costs are expensed.
Produces the combined statement of financial position and profit or loss for both years, a statement of changes in equity extract, the combination journals and 15 checks.
What you get
One Excel workbook (.xlsx) with an Instructions tab, the blank template and a completed worked example for a fictitious company.
Clearly marked input cells, protected formulas and built-in checks, with a status line on every tab.
Works in Microsoft Excel 2010 or later (Windows or Mac). No macros.
Scope
Two companies, with 100% acquired and common control throughout both years presented. Non-controlling interests, deferred tax, the receiving company's separate financial statements and the cash flow statement are outside its scope. Merger accounting is an accounting policy choice to apply consistently and disclose; company-law points such as merger relief should be confirmed with your advisers.
Designed for small and medium-sized businesses reporting under IFRS Accounting Standards. It is a working aid: it does not replace the Standards or professional judgement, and its scope and limitations are set out in the Instructions tab.
