Consolidation, Business Combinations and Investment Accounting Course

Course Overview:

The Consolidation, Business Combinations and the Investment Accounting Course aims at a broad understanding of the intricacies of accounting looking at the aspects of preparing consolidated financial statements, business combination and investment transactions.

As a result of the completion, students will be able to apply the acquisition method in business combinations, account for goodwill together with non-controlling interests, and identify the differences that exist between IFRS and US GAAP.

Topics addressed in the course include the classification of financial instruments, measurement and impairment of financial assets, and the equity method of accounting for investments in associates. Other than this, learners will also be competent in consolidating financial statements, intercompany transactions, and post combination accounting. 

This course is suitable for financial managers, accountants and analysts, as it prepares participants to cover the complex aspects of business combination accounting and investment transactions.

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

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