Consolidation, Business Combinations and Investment Accounting

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Consolidation, Business Combinations and Investment Accounting Course
Introduction:
In this comprehensive course, participants will delve into the intricacies of accounting for business combinations, the preparation of consolidated financial statements, and other pertinent topics. These include step-by-step acquisition, deconsolidation, segment reporting, and the goodwill impairment test, among others.
The course commences with an exploration of the scope of ASC (Accounting Standards Codification) and highlights the distinctions between business combinations and asset acquisitions. Participants will gain a clear understanding of the measurement and recognition principles inherent in the acquisition method for accounting business combinations. The course then progresses to cover the consolidation process, providing valuable insights into the preparation of consolidated financial statements and the requisite consolidation adjustments.
By the end of the course, participants will have acquired a comprehensive understanding of the accounting principles and procedures related to business combinations and consolidated financial statements. They will possess the knowledge and skills necessary to navigate the complexities of these topics, ensuring accurate and compliant financial reporting. Whether it's accounting for acquisitions, preparing consolidated financial statements, or making crucial consolidation adjustments, this course equips participants with the tools to confidently handle these critical tasks.
Course Objectives:
At the end of this Consolidation, Business Combinations and Investment Accounting Course, learners will be able to do:
- Recognize the process of consolidating financial statements.
- Identify business combinations and their related transactions.
- Apply the acquisition method for business combinations.
- Account for goodwill and non-controlling interests.
- Identify different types of financial instruments and accounting methods for each.
- Account for transactions according to the fair value method, equity method, and amortized cost.
- Recognize differences and similarities between International Financial Reporting Standards (IFRS) and the US Generally Accepted Accounting Principles (GAAP).
Who Should Attend?
Financial managers and controllers, accounting managers, senior accountants, financial analysts, investment accountants, general ledger accountants, financial assistants, and any professional involved in accounting for business combinations and consolidations and professionals who wish to understand accounting for financial instruments.
Course Outlines:
Financial Instruments
- Categories of Investments
- Presentation of Financial Instruments
- Distinguishing Liabilities from Equity
- Classification of Instruments:
- Held-to-Maturity Debt Securities (HTM)
- Trading Securities (TS)
- Available-for-Sale Securities (AFS)
- Fair Value through Profit and Loss Option
- Determining Fair Value
- Initial and Subsequent Measurement
- Reclassification and Transfer between Categories
- Constraints on Reclassifications
- Derecognition of Financial Instruments
- Impairment of Financial Assets Carried at Amortized Cost
- Impairment of Financial Assets Carried at Fair Value
- Impairment of Financial Assets Carried at Cost
- Accounting for Sales of Financial Instruments
- The Recent Accounting Updates According to IFRS 9
Investments in Associates
- Accounting Based on the Equity Method
- Situations when Cost Method is Applicable
- Differences in Fiscal Year
- Intercompany Transactions between Investor and Investee
- Accounting for a Partial Sale or Additional Purchase of Equity Investment
- Change in Level of Ownership or Degree of Influence
- Accounting for Impairment
Transactions Accounted for as Business Combinations
- Defining a Qualifying Business
- Structures of Business Combinations
- IFRS and US GAAP Consideration
Accounting for Business Combinations
- Applying the Acquisition Method
- Identifying the Acquirer
- Recognizing and Measuring the Identifiable Tangible and Intangible Assets Acquired and Liabilities Assumed
- Classifying or Designating Identifiable Assets Acquired and Liabilities Assumed
- Recognizing and Measuring any Noncontrolling Interest
- Measuring the Consideration Transferred
- Recognizing and Measuring Goodwill or Gain from a Bargain Purchase
- Acquisition Related Costs
- Accounting for Gain on Bargain Purchase Option
Consolidated Financial Statements
- Defining “Control”
- Changes in Ownership Interest without Loss of Control
- Changes in Ownership Interest Resulting in Loss of Control
- Consolidation Procedures
- Intercompany Transactions and Balances
Post Combination Measurement and Accounting
- Reacquired Rights
- Contingent Liabilities
- Indemnification Assets
- Contingent Consideration
Goodwill Measurement
- Measurement of Goodwill
- Impairment of Goodwill