Business Combinations - U.S. GAAP and IFRS (Course Id 1934)

• Who is this course for?
  This course is for CPAs, accountants, and financial reporting professionals seeking CPE credit who want to understand the similarities and differences between U.S. GAAP (ASC 805) and IFRS (IFRS 3) in accounting for business combinations.

• What is this course about or what problem does this course solve?
  It compares the business combination standards issued by the FASB and IASB, outlining the acquisition method steps and highlighting notable differences that can impact reporting and compliance.

• How can the knowledge from this course be used?
  Learners can apply the information to accurately account for mergers and acquisitions under either framework, ensuring proper recognition of assets, liabilities, goodwill, and disclosures.

• Why is this course important to a CPA, Accountant, or IRS Enrolled Agent?
  Understanding these differences is essential for professionals involved in cross-border transactions, multinational audits, or clients transitioning between GAAP and IFRS reporting.

• When is this course relevant or timely?
  It is especially relevant during periods of merger and acquisition activity, when companies expand internationally, or when preparing consolidated financial statements under different standards.

• How is a course like this consumed or used?
  Delivered as a NASBA QAS-approved self-study text, the course includes review questions and a final exam, allowing participants to complete it at their own pace for CPE credit.

This course provides an overview of the similarities and key differences between the business combination standards issued by the FASB (ASC Topic 805) and the IASB (IFRS 3).  While these standards are very similar, as is the case with many areas of U.S. GAAP vs. IFRS, there are notable differences that are helpful to understand.  Note that this course is not intended to provide an exhaustive discussion of these differences.

NASBA QAS - Text - NASBA Registry - 1934

Course Learning Objectives

• List the key steps in the acquisition method for business combinations
• Recognize the applicable U.S. GAAP and IFRS standard with respect to business combinations
• Identify some of the key differences between ASC Topic 805 and IFRS 3

Chapter 1 - Business Combinations - U.S. GAAP and IFRS

Course Learning Objectives

Course Overview

Introduction – Importance of Understanding Differences

Overall Differences & Similarities between U.S. GAAP & IFRS

Business Combinations Overview

Definition of a Business

Step 1: Identifying the Acquirer

Step 2: Determining the Acquisition Date

Review Questions

Step 3: Recognizing and measuring the identifiable assets acquired, the liabilities assumed, and any noncontrolling interest in the acquiree

Acquisition of Contingencies

Contingent Consideration

Leases

Noncontrolling Interests

Step 4: Recognizing and Measuring Goodwill or Gain from a Bargain Purchase

Goodwill

Measurement Period Adjustments

Review Questions

Glossary of Key Terms