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 self-study accounting 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
- 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 key GAAP terminology within the context of business combinations and consolidations
• Recognize the core transaction mandating a business combination
• Recognize the circumstances under which an acquirer will recognize an intangible asset separate from goodwill
• Recognize the circumstances giving rise to the recognition of goodwill in a business combination
• Identify the relative extent of M&A activity in today’s business environment
• Identify the extent to which the current FTC administration is supporting M&A activity
• Recognize the parties most likely to be left off a due diligence team
• Identify the general rule for the recording of assets and liabilities of the acquiree
• Identify the current consolidation models within GAAP
• Recognize the general rule for the determination of the acquisition date
• Recognize the relative occurrence of bargain purchases
• Identify the steps within the acquisition method of accounting for business combinations
• Recognize those circumstances giving rise to the recognition of goodwill
• Recognize the accounting treatment for the purchase of assets vs. a business
• Recognize the methodology for identifying the acquirer in a business consolidation
• Identify specified accounting treatment when recognizing and measuring identifiable assets and liabilities assumed at fair value
• Identify the accounting treatment of transaction expenses in a business combination
• Identify the circumstances in which a contingency is recognized in the context of a business combination
• Identify the valuation approach generally resulting in the highest amount when used to value a business
• Recognize the valuation approach that uses historical financial information as its starting point
• Recognize the role of the IRR, WARA, and WACC in business valuations
• Identify the role of the tax amortization benefit in business valuations
• Identify the characteristics of non-compete agreements in the context of business valuations