This self-study webinar will provide an overview of current accounting guidance and key terms relating to business combinations that apply to goodwill being recognized or not. We will explore the “Acquisition Method’s” five steps and apply them to practical examples while reviewing certain exceptions. Specific areas of discussion will include:
- The 5 steps of the Acquisition Method
- The qualitative screen concept
- Equity vs. liability classifications
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Pushdown accounting
To help financial professionals understand how to effectively utilize goodwill in business combinations while ensuring proper testing of impairments occurs.
SPEAKER:
Bill Witt, Director of Accounting and Transaction Services, MorganFranklin
- Key Accounting Concerns
- Identifying Business Combinations
- Accountant's Roles & Responsibilities
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Five-Step Acquisition Method
– Identify the acquirer
– Determine the acquisition date
– Measure the consideration transferred
– Recognize and measure the identifiable assets acquired and liabilities assumed
– Recognize and measure goodwill (or gain from bargain purchase) - Reverse Mergers
- Equity Classification for Earn-Outs
- Measurement Period Adjustments
- Acquisition-Method Accounting
• Understand the criteria for determining if a transaction qualifies as a business combination
• Understand the “screen test” introduced in ASU 2017-01
• Identify the primary steps in the Acquisition Method
• Identify the differences between asset acquisitions and business combinations
• Understand the role of goodwill in business combinations
• Recognize how earnouts are classified in accounting
• Identify the components of purchase consideration
• Distinguish between purchase consideration and compensation expenses
• Understand pushdown accounting in acquisitions
• Recognize the significance of fair value measurement