Top Challenges in M-and-A Accounting - From Valuation to Integration (Course Id 2509)

This course provides an overview of accounting and reporting challenges encountered in M&A transactions. The primary focus is on the top challenges faced by accountants in the preparation and execution of M&A accounting, from valuation and due diligence to post-acquisition integration. This course provides an overview of how to address complex issues such as identifying the acquirer, measuring fair value, allocating purchase price, and accounting for goodwill and contingent consideration.

NASBA QAS - Text - NASBA Registry - 2509

Chapter 1
Pre-Acquisition - Planning and Due Diligence

• Identify the accounting acquirer in mergers and reverse acquisitions
• Recognize the impact of pre-acquisition contingencies on accounting
• Determine the treatment of acquisition-related costs
• Distinguish between purchase agreement terms and their accounting impact
• Select the appropriate valuation method for contingent consideration

Chapter 2
Acquisition Date Initial Recognition and Measurement

• Identify the steps within the acquisition method for business combinations
• Identify overall recognition conditions for intangible assets
• Distinguish between different categories of intangibles assets
• Identify overall measurement principles including specific exceptions
• Recognize the accounting alternative available for private and not-for-profit entities

Chapter 3
Post-Acquisition Accounting and Reporting

• Identify the key considerations in the recognition and measurement of goodwill
• Determine the accounting treatment for income taxes in a business combination
• Recognize the accounting requirements for step acquisitions
• Identify subsequent measurement requirements for assets and liabilities recognized

Chapter 4
Post-Acquisition Testing and Disclosures

• Recognize overall characteristics of goodwill impairment testing
• Recognize ASC 805 disclosure requirements for business combinations
• Identify common post-acquisition pitfalls, such as fair value allocation inconsistencies

Chapter 1 - Pre-Acquisition - Planning and Due Diligence

Chapter Overview

Learning Objectives

Introduction

Identifying the Acquirer

Pre-Acquisition Contingencies

Acquisition-Related Costs

Contingent Consideration

The Role of the Purchase Agreement

Conclusion

Review Questions

Chapter 2 - Acquisition Date Initial Recognition and Measurement

Chapter Overview

Learning Objectives

Introduction

Recognizing & Measuring Identifiable Assets & Liabilities

Classifying or Designating

Recognizing Assets Acquired and Liabilities Assumed

Recognition Exceptions

Measuring Assets Acquired and Liabilities Assumed

Noncontrolling Interests

Exceptions to the Measurement Principle

Conclusion

Review Questions

Chapter 3 - Post-Acquisition Accounting and Reporting

Chapter Overview

Learning Objectives

Introduction

Goodwill

Bargain Purchase

Business Combination Achieved in Stages

Income Tax Considerations

Subsequent Measurement of Assets & Liabilities

Conclusion

Review Questions

Chapter 4 - Post-Acquisition Testing and Disclosures

Chapter Overview

Learning Objectives

Introduction

Overall Accounting for Goodwill

Impairment Testing Requirements

Qualitative vs. Quantitative

Performing the Qualitative Test

Performing the Quantitative Test

Financial Statement Disclosures

Common Pitfalls in Post-Acquisition Accounting

Conclusion

Review Questions

Glossary of Key Terms