Business Combinations and Consolidations
The typical accountant views the accounting for business combinations with a certain amount of trepidation. This course reduces the anxiety level by describing all aspects of the associated accounting, including the identification of goodwill, reverse acquisitions, and related disclosures. It also notes how to account for a reduced investment in an investee using the equity method. It goes on to discuss goodwill impairment, the consolidation of financial statements, and the steps involved in integrating accounting activities following a business combination. In short, Business Combinations and Consolidations provides a solid toolkit for dealing with the accounting side of mergers and acquisitions.
Format
PDF Course
Level
Overview
Duration
3.5 Hours
Course Information
Author: Steven Bragg
Course Number: AC1082
Table of Contents
Chapter 1. Business Combinations
Chapter 2. The Equity Method
Chapter 3. Goodwill Impairment
Chapter 4. Financial Statement Consolidation
Chapter 5. Intercompany Accounting
Chapter 6. Accounting Integration
Learning Objectives
- Identify the circumstances under which step and reverse acquisitions occur.
- Specify the calculations required to determine the amount of ownership in an investee under the equity method.
- Recognize the situations in which impairment testing is to be conducted, and when goodwill amortization can be used.
- Identify the situations in which a controlling financial interest cannot be determined, as well as the types of eliminations used when conducting a consolidation.
- Recognize when financial statements are considered to be special-use.
- Identify the rules for dealing with intercompany transactions in the consolidated financial statements.
- Recognize the actions needed to centralize accounting activities following a business combination.
Level: Overview
Instructional Method: QAS Self-Study
NASBA Category: Accounting
Prerequisites: None
Advance Preparation: None
Latest Review Date: October 2025
Program Registration Requirements: Click on the Enroll button to pay for and access the course. You will then be able to download the course as a PDF file, then take an on-line examination, and then download a certificate of completion if you pass the examination.
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