Multinational Acquisition

Multinational Acquisition

John Simpson

Professor James Wright

Advanced Accounting 401

May 26th, 2012

Multinational Acquisition

Briefly describe the acquisition you have selected

The Company that I have chosen is Monsanto who is a relatively new company. While they share the name and history of a company that was founded in 1901, today’s company is focused on agriculture and supporting farmers around the world in their mission to produce more while conserving more. They are an agricultural company. In 2005 Monsanto acquires Seminis, a global leader in the vegetable and fruit seed industry. Seminis supplies more than 3,500 seed varieties to commercial fruit and vegetable growers, dealers, distributors and wholesalers in more than 150 countries around the world. The company is headquartered in Oxnard, California and will operate as a wholly-owned subsidiary of Monsanto. They are estimated to have control of forty percent of the U.S. vegetable seed market and twenty percent of the world market supplying the genetics for fifty five percent of the lettuce on U.S. supermarket shelves, seventy five percent of the tomatoes, and eighty five percent of the peppers, with strong holdings in beans, cucumbers, squash, melons, broccoli, cabbage, spinach and peas. The company's biggest revenue source comes from tomato and peppers seeds, followed by cucumbers and beans.

Analyze the accounting requirements for the business combination and discuss challenges in preparing the financial statements for the consolidation of subsidiaries on the date of acquisition.

The consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States. These statements pertain to Monsanto and its controlled subsidiaries. Investments in other companies over which Monsanto has the ability to exercise...