Business Combinations and Consolidated Financial Reporting - v10 (Course Id 883)

Accounting - Accounting for Course Id 883

This course reviews the two standards reflected in the Codification as ASC 805, Business Combinations, and ASC 810, Consolidation. These statements, which require prospective treatment for new business combinations having fiscal years beginning after December 15, 2008, mandate what is referred to as the acquisition method. This course highlights recent FASB guidance in the definition of a business, simplifying the test for goodwill impairment, and private company goodwill alternative.

This course emphasizes both the theory and practice relating to the acquisition method standards. A comparison of old (e.g., poolings of interest and purchase methods) and acquisition method rules will prepare practitioners for dealing with the variety of practices they will encounter at their clients or employers. This course also addresses the preparation of consolidated financial statements, the appropriate treatment of the costs affecting a combination, and other related issues. 

NASBA QAS - Text - Technical - NASBA Registry - 883

Chapter 1
Business Combinations

• Analyze transactions under the new definition of a business
• Recognize the accounting and reporting requirements for a business combination using the acquisition method
• Recognize accounting alternative for goodwill available to private (nonpublic) companies

Chapter 2
Consolidated Financial Reporting

• Recognize when financial statement consolidation is appropriate
• Identify how consolidation is reported and disclosed
• Calculate different valuations recorded in a combined financial statement

Chapter 1:    Business Combinations

Learning Objectives

Background

Relevant Accounting Pronouncements

General Rules

Definition of Business

Overview

Key Concepts

Forms of Business Combinations

The Acquisition Method

Accounting and Reporting Under the Acquisition Method

Statutory Merger

Statutory Consolidation

Acquisition

Treatment of Intangible Assets

Definition of Goodwill under the Acquisition Method

Treatment of Goodwill

Chapter 1 Review Questions - Section 1

Income Statement Reporting

Direct Combination Costs and Stock Issuance Costs

Restructuring Costs

Preacquisition Contingencies

Contingent Consideration

Pushdown Accounting

Contrast of Acquisition Method with Purchase and Pooling of Interests Methods

Steps to Accounting under the Acquisition Method

Research and Development Costs Acquired as Part of a Business Combination

Income Taxes

Disclosures

Chapter 1 Review Questions - Section 2

Chapter 2:    Consolidated Financial Reporting

Learning Objectives

Relevant Authoritative Pronouncements

Exceptions to Consolidation of Majority Owned Subsidiaries

Steps to Achieve Consolidation

Consolidation Worksheet Entries and Examples

Comprehensive Consolidation Problem—Acquisition Method

Consolidation of Noncontrolling (Minority) Interests

Chapter 2 Review Questions - Section 1

Contrast of Acquisition and Purchase Methods for Noncontrolling (Minority) Interests

Spin-Offs

Consolidation Reporting—Other Topics

Taxes

Accounting for Transfers of Financial Assets (ASC 860)

Accounting Treatment

Variable Interest Entities (VIEs)

Fair Value Option Relating to VIEs

Private Companies

Disclosure

Disclosures

Combined Financial Statements

Chapter 2 Review Questions - Section 2

Appendix - Annual Report Reference

International Business Machines Corporation

Glossary