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Q> In the context of a current, well publicised merger discuss: A)the accounting issues that management would have to consider. You should make reference to statute and standards. B)From a shareholder perspective, the difficulties a proposed merger may encounter. When a merger takes place between two entities the management of these companies must face the task of adjusting their accounting methods to deal with the fact that they now manage a new …

…of the entities involved have many issues to contend with, not least the decisions as to which accounting requirements are applicable to them and also their consequences for the business. As well as these technical (contendings ) management must also deal with possible opposition from its shareholders. In the case of HBOS, management kept the shareholders very well informed of developments which helped to keep them on board and contributed to the success of their merger.