Business Combinations and Consolidated Financial Reporting

Course Description

This course reviews the two standards reflected in the Codification as ASC 805, Business Combinations, and ASC 810, Consolidation. These statements, which require prospective treatment for new business combinations having fiscal years beginning after December 15, 2008, mandate what is referred to as the acquisition method. This course highlights recent FASB guidance in the definition of a business, simplifying the test for goodwill impairment, and private company goodwill alternative.

This course emphasizes both the theory and practice relating to the acquisition method standards. A comparison of old (e.g., poolings of interest and purchase methods) and acquisition method rules will prepare practitioners for dealing with the variety of practices they will encounter at their clients or employers. This course also addresses the preparation of consolidated financial statements, the appropriate treatment of the costs affecting a combination, and other related issues.

Learning objectives

• a:3:{i:0;s:64:"Recognize when financial statement consolidation is appropriate.";i:1;s:53:"Identify how consolidation is reported and disclosed.";i:2;s:74:"Calculate different valuations recorded in a combined financial statement.";}
• a:3:{i:0;s:60:"Analyze transactions under the new definition of a business.";i:1;s:108:"Recognize the accounting and reporting requirements for a business combination using the acquisition method.";i:2;s:89:"Recognize accounting alternative for goodwill available to private (nonpublic) companies.";}

Final examination expiration date:

The program participant will have one year from the date of purchase to complete the course and final examination.