Curtin University Homepage
  • Library
  • Help
    • Admin

    espace - Curtin’s institutional repository

    JavaScript is disabled for your browser. Some features of this site may not work without it.
    View Item 
    • espace Home
    • espace
    • Curtin Research Publications
    • View Item
    • espace Home
    • espace
    • Curtin Research Publications
    • View Item

    Option valuation and accounting for contingent consideration in mineral sector acquisitions

    Access Status
    Fulltext not available
    Authors
    Chandra, A.
    Guj, Pietro
    Date
    2012
    Type
    Journal Article
    
    Metadata
    Show full item record
    Citation
    Chandra, Atul and Guj, Pietro. 2012. Option valuation and accounting for contingent consideration in mineral sector acquisitions. International Journal of Business Studies. 20 (1): pp. 43-68.
    Source Title
    International Journal of Business Studies
    Additional URLs
    http://search.informit.com.au/documentSummary;dn=078726859580771;res=IELBUS
    ISSN
    13207156
    URI
    http://hdl.handle.net/20.500.11937/4052
    Collection
    • Curtin Research Publications
    Abstract

    Vendor consideration on acquisition of mineral sector companies/projects may include shares and/or options contingent on achievement of uncertain milestones either financial (specified levels of future profit, share price etc) or physical (delineation of specific levels of mineral resources). Accounting standards on business combination, fair value and financial instruments have recently undergone major changes, with potentially significant impact on the valuation and accounting of the consideration transferred. The valuation approaches to assess the "fair value" of contingent consideration in the form of financial instruments include expected present value techniques and option-pricing models. These are discussed and applied to an actual acquisition of an iron ore exploration project/company in West Africa. Valuation of contingent consideration provides valuable insights and benefits while negotiating and accounting for business acquisitions.

    Related items

    Showing items related by title, author, creator and subject.

    • Modelling the costs of corporate implementation of building information modelling
      Olatunji, Oluwole (2011)
      Purpose – The popularity of Building Information Modelling (BIM) has improved tremendously inrecent years. The business sense it makes to construction small to medium-sized (SME) organizationshas also become vitally ...
    • Digital Videos in Financial Accounting: A Sociocognitive Approach to Learning
      Broadley, Tania; Taylor, Grantley (2013)
      Understanding the important concepts necessary to undertake the preparation of consolidated financial statements has proven challenging for many accounting undergraduate students. As a result, the development of multimedia ...
    • Does the process of deliberation change individuals' health state valuations? An exploratory study using the person trade-off technique
      Robinson, Suzanne; Bryan, S. (2013)
      Background: This article explores two gaps in the health state valuation literature: the effect of processes and the stability of health state valuations, and the existence of preexisting valuations. Stability in health ...
    Advanced search

    Browse

    Communities & CollectionsIssue DateAuthorTitleSubjectDocument TypeThis CollectionIssue DateAuthorTitleSubjectDocument Type

    My Account

    Admin

    Statistics

    Most Popular ItemsStatistics by CountryMost Popular Authors

    Follow Curtin

    • 
    • 
    • 
    • 
    • 

    CRICOS Provider Code: 00301JABN: 99 143 842 569TEQSA: PRV12158

    Copyright | Disclaimer | Privacy statement | Accessibility

    Curtin would like to pay respect to the Aboriginal and Torres Strait Islander members of our community by acknowledging the traditional owners of the land on which the Perth campus is located, the Whadjuk people of the Nyungar Nation; and on our Kalgoorlie campus, the Wongutha people of the North-Eastern Goldfields.