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Case questions: Tata Steel Acquisition of Corus: Accounting for goodwill

Prof. Hariom Manchiraju, ISB

Q1. What were some of the main reasons for this merger?

Q2. What were the biggest risks associated with this merger?

Q3. How much did Tata Steel pay to acquire Corus? What is the accounting entry that Tata Steel
would have made when it acquired Corus?

Q4. In your assessment how has the combined entity performed after the merger?

Q5. Comment upon the amount and the timing of impairment charges?

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