Advanced Financial Reporting: Accounting for Business Combinations and Preparation of Consolidated Financial Statements

This module provides an introduction to the course and familiarizes participants with the professor, course structure, and resources available. It also includes an orientation quiz and opportunities to interact with classmates.

Module 1 encompasses an overview of accounting for investment in equity securities, the scope of ASC 805, control of a business, and the acquisition of a group of assets. Participants can also test their knowledge through lesson checks.

Module 2 focuses on the acquisition method, covering the goodwill equation, and the preparation of consolidated financial statements on the business combination date. Participants can solidify their understanding with module quizzes and knowledge checks.

Module 3 delves into the components of consideration transferred in a business combination, discussing share-based payment awards, contingent consideration, and identifiable assets acquired. It also includes module quizzes and knowledge checks for reinforcement.

Module 4 explores the assets acquired and liabilities assumed, addressing identifiable assets acquired, intangible assets other than goodwill, and deferred taxes on the acquisition date. Participants can reinforce their learning through module quizzes and knowledge checks.

Module 5 is dedicated to the preparation of consolidated financial statements after the acquisition date, covering accounting acquisition premium, intercompany inventory transactions, and their effects on consolidated financial statements. It includes module quizzes and knowledge checks for self-assessment.

Module 6 delves into intercompany transactions and noncontrolling interest, discussing intercompany transactions with depreciable assets, noncontrolling interest, and consolidated retained earnings. It also includes an example of consolidation with NCI and self-assessment through module quizzes and knowledge checks.

Module 7 covers the change in the percentage of ownership and other related topics, including business combinations achieved in stages, deconsolidation, and subsidiary holds shares of the parent. It provides opportunities for self-assessment through module quizzes and knowledge checks.

Module 8 concludes the course with a detailed exploration of segment reporting and the goodwill impairment test, discussing entity-wide disclosure, qualitative and quantitative assessments of goodwill impairment, and private companies accounting for goodwill. Participants can evaluate their learning through module quizzes and knowledge checks.