The rules for business combinations and consolidations are complex. To ensure financial statement compliance, financial professionals must possess a firm grasp of these rules. In this targeted accounting self-study webinar, you will:
- Review accounting and reporting for acquisitions, consolidations and noncontrolling interests
- Learn to recognize and record acquisitions appropriately
- Analyze differences between separable and legal/contractual intangibles and goodwill
- Understand changes to the goodwill impairment test and use of qualitative factors
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Hear about the impact of COVID-19
To provide accountants with a thorough understanding of the accounting rules for business combinations and intangibles. This self-study webinar will use real-world examples to show you how to put the rules into practice.
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Financial statement impact of the business combination rules
– Fair value
– Contingent consideration and liabilities
– Transaction costs and in-process R&D
– Step acquisitions and the cost-accumulation model - Accounting, valuation and disclosures for noncontrolling interests, and those under common control
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Accounting for acquisitions
– Determining the acquirer
– Value recognition
– Disclosures -
Goodwill and other intangible assets
– Amortizable and nonamortizable assets
– Separating goodwill from other intangibles
– Special treatment for nonpublic entities
– Determining goodwill and negative goodwill
– Amortization, impairment and valuation issues
– Goodwill impairment—the latest on reporting units, testing, qualitative factors and special exceptions - Consolidation requirements (ASC 810), including triggers for Variable Interest Entities
- Clarifying the definition of a business—what qualifies to consolidate and what doesn’t
- Push down accounting
- FASB Simplification Initiative: impact on financial statements
- The impact of COVID-19
• Identify the characteristics of the FASB Simplification Initiative
• Identify the future role of codification improvements
• Recognize accounting authoritative bodies’ responses to the COVID-19 pandemic
• Recognize the current definition of a business in the context of a business combination
• Recognize the key event that results in a business combination
• Identify how to determine a business combination acquisition date
• Recognize the accounting steps when applying the acquisition method
• Recognize the general methodology for recording assets and liabilities in a business combination
• Identify the acquisition method step typically the most time-consuming when accounting for a business combination
• Recognize the scope limitations of ASC Topic 805
• Recognize the circumstances under which goodwill will be recorded in a business combination
• Identify the relative occurrence of a bargain purchase in the context of a business combination
• Identify the current role of pushdown accounting in a business combination
• Identify the appropriate financial statement placement of the consolidated net income attributable to a noncontrolling interest
• Recognize the circumstances under which a subsidiary should be deconsolidated from the parent entity
• Recognize the appropriate useful economic life for intangibles with finite lives
• Identify the relevant factors for determining useful economic life of intangibles
• Identify the accounting parameters of accounting for the impairment of intangibles other than goodwill
• Recognize the traditional valuation measures for intangibles
• Identify the types of intangibles not typically separated from goodwill
• Identify the unit at which goodwill impairment is tested
• Identify the available methodologies for assigning goodwill to reporting units
• Recognize events that would typically trigger a goodwill impairment test
• Recognize the appropriate frequency for which impairment testing must occur
• Recognize goodwill impairment testing options available to specified organizations
• Identify impairment testing qualitative assessment considerations
• Recognize basic accounting rules for the equity method of accounting for investments
• Identify reasons for organizations to form a joint venture
• Identify the rights held by investors in a joint venture
• Recognize the accounting consequences of FIN 46R on accounting for VIEs
• Recognize the characteristics of special purpose entities