Advanced Financial Accounting: Acquisitions & Consolidations

Name: Advanced Financial Accounting: Acquisitions & Consolidations
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Acquisitions, Consolidations, and Reporting. Master complex concepts and applications

Created byRobert (Bob) Steele

Last updated 6/2023

English

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What you'll learn

Evaluate financial and operational implications of acquisitions, recognizing goodwill and intangible assets.
Analyze consolidation techniques for parent-subsidiary financial statements, eliminating intercompany transactions.
Compare accounting for less than wholly owned subsidiaries, using equity method and proportionate consolidation.
Assess impact of acquiring subsidiaries above book value, calculating goodwill and non-controlling interest.
Apply accounting principles for intercompany inventory transfers, eliminating unrealized profits/losses.
Evaluate consolidation process for noncurrent assets and services, eliminating intercompany gains/losses.
Analyze accounting treatment for intercompany indebtedness, eliminating loans and interest income/expense.
Evaluate reporting issues in consolidation, including foreign currency transactions and translation.
Apply principles for interim and segment reporting, recognizing segment information and related-party transactions.
Analyze SEC requirements for financial reporting and disclosure, filing periodic reports and applying GAAP.

Course content

39 sections • 190 lectures • 63h 39m total length

105 Business Acquisition & Expansion15:31
Examine internal and external expansion and the formation of parent subsidiary structures. Address how accounting for these relationships handles consolidation, transparency, and standardization in mergers and acquisitions.
OneNote Resource
110 Internal Business Expansion7:34
Examine internal expansion via creating a subsidiary and transferring assets and liabilities, and analyze spin-offs and split-offs that restructure parent–subsidiary ownership while focusing on core business.
115 External Business Expansion13:35
Explore external business expansion through mergers and business combinations, focusing on control thresholds, parent-subsidiary structures, and consolidated versus non-controlling ownership in accounting.
120 Business Combinations Methods13:11
Explore how the acquisition method now governs external business combinations, replacing the pooling of interest and purchase methods, with fair value revaluations and goodwill considerations.
125 Internal Expansion Accounting6:27
Learn how internal expansion creates a subsidiary, transfers assets and liabilities at book value, and applies impairment rules to the lower of book value or fair value.
130 Forms of Business Combinations10:43
Explore forms of external business combinations, including statutory merger, statutory consolidation, and stock acquisition, covering controlling interests, transfer of assets and liabilities, and consolidation under a parent subsidiary structure.
135 Valuation of Business Entities13:52
Learn how to value business entities during external expansion, comparing acquisition of assets and acquisition of stock, using fair value, appraisal methods, and consideration, including contingent liabilities and tax implications.
140 Statutory Merger12:16
Explore statutory mergers, contrasting friendly mergers with hostile takeovers, and how controlling interest forms parent-subsidiary structures, asset exchanges, liquidation, or new entity consolidations.
145 Acquisition Accounting4:39
Discuss acquisition accounting by recognizing all assets and liabilities at fair value on the acquisition date, valuing non-controlling interests, and consolidating assets and liabilities for the acquiring entity.
150 Acquisition Accounting Goodwill9:41
Explore acquisition accounting for goodwill, including revaluing assets and liabilities to fair value, recognizing excess payment as goodwill, and testing impairment annually with goodwill assigned to reporting units.
155 Acquisition Accounting Bargain Purchase6:04
Explore bargain purchases in acquisition accounting by valuing net assets at fair value and recognizing a gain when the consideration is less than net assets, contrasting with goodwill.
160 Other Intangibles1:56
Explore accounting for acquisitions by separating and valuing intangibles beyond goodwill, including marketing assets, internet domains, trademarks, customer lists, copyrights, contracts, franchises, licenses, and technology-based intangibles, whether patented or not.
163 Financial Reporting After a Business Combination1:16
Apply advanced financial reporting after a business combination, starting the combined entity from the acquisition date. Avoid reporting revenue earned before the combination for the combined entity.
166 Measurement Period and Contingent Considerations6:15
Explore measurement period and contingent considerations in acquisitions, detailing fair value of assets and liabilities and the treatment of in-process research and development.
169 Consolidation Process Overview11:49
Explore the consolidation process for a 100 percent owned subsidiary, from simpler to more complex levels, using a consolidation worksheet and elimination entries to present a single entity.

101 Practice Problem One Company Creates Fully Owed Subsidiary16:40
Examine journal entries for forming a fully owned subsidiary, transferring assets and liabilities in exchange for parent equity, using par value stock, additional paid in capital, and book value treatment.
113 One Company Fully Purchasing Another Using Bonds10:30
Explore how a purchaser uses bonds to acquire another company's net assets, valuing assets at fair value, recognizing goodwill, and recording the journal entries in advanced financial accounting.
121 One Company Fully Purchases Net Assets of Another Using Common Stock13:23
P fully purchases the net assets of S by issuing common stock, revaluing S's assets to fair value, and recognizing goodwill from the excess of consideration over net assets.

101 Fully Owned Subsidiary Creation Journal Entry18:01
explores creating a fully owned subsidiary, transferring assets and liabilities from the parent, and recording the journal entry with a trial balance in Excel.
108 Company Purchase Net Asset of Another Company11:39
Record the acquisition of a subsidiary's net assets in Excel with fair value revaluation, recognize goodwill, and post journal entries and a finder's fee to a trial balance.
113 One Company Fully Purchasing Another Using Bonds11:38
Demonstrates recording a full acquisition where a parent company uses bonds to buy another firm, revaluing assets to fair value, recognizing a bond discount and potentially goodwill.
121 One Company Fully Purchases Another Using Common Stock11:22
Explore how to record a full acquisition using common stock in Excel, revalue assets to fair value, and calculate goodwill and equity components like par value and additional paid-in capital.
124 One Company Creates A Fully Owned Subsidiary17:58
Practice forming a fully owned subsidiary from a parent, recording the transaction in Excel, and balancing assets, liabilities, and equity via book value and fair value.
127 One Company Purchases Net Assets of Another Exchanging Stock Issued15:24
Analyze a stock-for-assets acquisition where one company buys the net assets of another at fair value, recording stock issuance, goodwill, and related issuance costs in Excel.
140 Acquisition & Merger & Liquidation Detailed Problem35:02
Explore an advanced financial accounting scenario of acquiring a target's net assets, revaluing to fair value, and liquidating the acquired company, with journal entries, stock issuance, and goodwill.

205 Accounting Related to Ownership & Control8:49
Explore ownership thresholds in investment accounting—zero to twenty percent carried value, twenty to fifty percent under the equity method, and fifty-one percent plus for consolidation—reflecting control.
209 Securities Carried at Fair Value Accounting13:32
Explain fair value accounting for securities under 20 percent ownership, including initial cost, fair value adjustments, dividend income when declared, unrealized gains or losses, and contrast with the equity method.
214 Investments Using the Equity Method21:20
Use the equity method when the investor has significant influence (20% or more). Increase the investment by the investor's share of profits and reduce it by dividends, starting at cost.
217 Consolidation Process 100% Owned Subsidiary11:49
Explore the consolidation process for a 100 percent owned subsidiary, including eliminating entries and using a consolidation worksheet to present two entities as one.

219 Excel Problem Equity Method vs Fair Value Method28:21
Explore how to account for a 30% investment under fair value and equity methods in Excel, recording journal entries and trial balance adjustments across three years.
221 Consolidation Equity Method Year 1 – P Co. Purchased 100% of Shares of S at23:38
Explores a 100 percent acquisition consolidation between two companies, using the equity method, elimination entries, and a consolidated worksheet to produce a trial balance.
222 Consolidation Equity Method Year 2 – P Co. Purchased 100% of Shares of S at15:19
Practice a year two consolidation in Excel for a 100% owned subsidiary purchased at net asset value, including elimination entries and depreciation adjustments for a consolidated trial balance.
227 Consolidation Cost Method Year 1 – P Co. Purchased 100% of Shares of S at Ne19:01
Learn how to perform a year-end consolidation using the cost method for a 100% owned parent and subsidiary, including elimination entries, dividends, and depreciation adjustments.
228 Consolidation Cost Method Year 2 – P Co. Purchased 100% of Shares of S at Ne17:14
Consolidate two companies using the cost method in year two, eliminating the investment and intercompany dividends, and adjusting common stock and retained earnings at purchase.

305 Usefulness of Consolidated Financial Statements13:16
Explain the usefulness of consolidated financial statements, showing how a parent with over 51 percent controls subsidiaries and presents them as a single entity, plus pros and cons.
310 Direct & Indirect Control7:43
Explore direct and indirect control and how they drive consolidation, including parent-subsidiary relationships, 51 percent control, complex structures, exercise of control, differing fiscal periods, and remittance restrictions in foreign reorganization.
315 Consolidation for Non Wholly Owned Subsidiary13:20
Explore consolidation for a non wholly owned subsidiary, applying full consolidation under GAAP and presenting non-controlling (minority) interest in equity and the consolidated income statement.
320 Consolidation Calculations Less Then Wholly Owned Subsidiary10:27
Learn how to consolidate less than wholly owned subsidiaries, including 100 percent consolidation, non-controlling interests, and elimination entries on the income statement and balance sheet.

326 Consolidation Year 0 P Co. Purchased 90% of Shares of S at 90% of Net Asset14:38
Consolidate a 90 percent acquisition of s at year zero, eliminate the investment, and present non-controlling interest while performing full consolidation of assets and liabilities.
327 Consolidation Year 1 P Co. Purchased 90% of Shares of S at 90% of Net Asset18:59
Perform a year-end consolidation for a 90% parent, P, and subsidiary, S, removing the investment under the equity method and presenting non-controlling interest on the consolidated books.

326 Consolidation Excel Non-Wholly Owned Subsidiary Not Goodwill Year 018:58
Discover Excel-based consolidation of a non-controlling, non-wholly owned subsidiary with no goodwill, at the acquisition date, using the equity method and recognizing the non-controlling interest.
327 Consolidation Excel – Non-Wholly Owned Subsidiary Not Goodwill Year 126:04
Explore advanced consolidation in excel as a 90% owned subsidiary with no goodwill, using the equity method, elimination entries, and non-controlling interest to prepare consolidated financial statements.
328 Consolidation Excel Non-Wholly Owned Subsidiary Not Goodwill Year 223:04
Advance your understanding of consolidation in non wholly owned subsidiaries using the equity method with 80 percent control. Master elimination entries and non-controlling interest in the consolidated financial statements.

405 Consolidation When There is a Book & Fair Value Difference Overview24:27
explore consolidation when a parent and subsidiary differ in book value and fair value, including depreciation, goodwill, and equity method adjustments at acquisition.
410 Consolidation With Difference Simple Example8:31
420 Intercompany Transactions7:59
Explore intercompany transactions and their elimination in consolidation between parent and subsidiary, including receivables, payables, and interest components, to prevent overstated assets and liabilities.
425 Push Down Accounting9:39
Explore push down accounting in parent-subsidiary structures, revaluing assets to fair value and recognizing goodwill when the purchase exceeds book value, to simplify consolidation without changing ultimate results.

425 Consolidation 100% Owned Goodwill & PP&E Value Adjustments13:57
Advanced financial accounting: consolidate 100 percent owned parent and subsidiary using a consolidation worksheet, recognizing goodwill and fair-value adjustments to property, plant, and equipment at the purchase date.
427 Consolidation 100% Owned, Land Revaluation, Purchases with Stock Issuance Ye14:54
Practice consolidation of a 100% owned subsidiary with land revaluation and stock issuance, applying the equity method, fair value adjustments, and one-year-later eliminations.
431 Consolidation 100% Owned Goodwill & Inter-Company Transactions Year 011:42
Consolidate a 100% owned subsidiary at year zero by recognizing goodwill, eliminating intercompany investments and balances, and netting depreciation in the consolidation entries.
433 Consolidation 100% Owned, Goodwill, Fair Value PP&E, & Impairment of Goodwil18:10
This lecture demonstrates consolidating a 100% owned subsidiary, computing goodwill, adjusting PPE to fair value, recognizing impairment, and performing a year-later consolidation with elimination entries.
435 Consolidation 100% Owned, Fair Value PP&E Difference, & Intercompany Transac21:52
Explore consolidation of a 100% owned subsidiary, adjusting for PPE fair value above book value and five years of depreciation and accumulated depreciation, plus intercompany transactions.
436 Consolidation 100% Owned, Fair Value PP&E Difference, & Intercompany Transac23:13
Learn advanced consolidation with a 100% owned parent and subsidiary, handling fair value adjustments to depreciable assets, intercompany transactions, and equity method effects after one year.
437 Push Down Accounting17:03
Explore push down accounting to simplify consolidations by adjusting a subsidiary's books to fair value at acquisition, aligning assets and equity with the parent through the equity method and eliminations.

Requirements

Solid understanding of basic accounting principles and financial statement analysis
Familiarity with intermediate accounting concepts

Description

Welcome to the comprehensive Advanced Financial Accounting course, a deep dive into the complex world of acquisition and consolidation in financial reporting. This course provides you with a solid understanding of these critical topics.

Key Topics Explored:

Acquisition & Investments:
1. Understanding the process of acquiring and investing in other entities, including fair value assessments and recognition of noncontrolling interests.
2. Analyzing the impact of these transactions on financial statements and reporting requirements.
Consolidations of Wholly Owned Subsidiaries:
1. Exploring the consolidation process for subsidiaries fully owned by the parent company.
2. Eliminating intercompany transactions and preparing consolidated financial statements.
Consolidations of Less Than Wholly Owned Subsidiaries:
1. Examining the consolidation procedures for subsidiaries where the parent company does not have full ownership.
2. Accounting for noncontrolling interests and their effect on financial reporting.
100% Owned Subsidiary Purchased at More Than Book Value:
1. Understanding the accounting treatment when a parent company acquires a wholly owned subsidiary at a price exceeding its book value.
2. Assessing the implications for consolidation and financial reporting.
Under 100% Owned Subsidiaries Acquired at More Than Book Value:
1. Analyzing the consolidation process when a parent company acquires less than full ownership of a subsidiary at a price exceeding its book value.
2. Accounting for noncontrolling interests and their impact on consolidated financial statements.
Inventory Transfer Intercompany:
1. Evaluating the accounting treatment for intercompany transfers of inventory between related entities.
2. Understanding the impact on consolidated financial statements and inventory valuation.
Consolidation-Transfer of Noncurrent Assets & Services:
1. Examining the consolidation procedures for intercompany transfers of noncurrent assets and services.
2. Analyzing the effect on consolidated financial statements and related party disclosures.
Consolidation-Intercompany Indebtedness:
1. Understanding the accounting treatment for intercompany loans and indebtedness.
2. Assessing the impact on consolidated financial statements and related disclosures.
Consolidation Ownership & Other Reporting Issues:
1. Exploring various ownership structures in consolidated financial reporting.
2. Addressing additional reporting issues, such as changes in ownership and related party transactions.
Consolidation-Foreign Currency Transactions & Reporting Issues:
1. Analyzing the accounting treatment for foreign currency transactions within a consolidated entity.
2. Understanding the reporting requirements and translation of foreign entity financial statements.
Interim Reporting & Segment Reporting:
1. Exploring the unique considerations for interim financial reporting and segment reporting.
2. Assessing the disclosure requirements and reporting standards set by regulatory bodies.
Securities & Exchange Commission (SEC) Reporting:
1. Understanding the reporting requirements imposed by the SEC on publicly traded companies.
2. Analyzing the impact of SEC regulations on financial reporting and disclosure practices.

With comprehensive presentations, practical demonstrations, and hands-on Excel exercises, you'll gain a deep understanding of advanced accounting principles. Access downloadable textbooks, supplemental materials, and Excel templates to enhance your learning experience.

This course is designed for accounting professionals, auditors, financial analysts, and students seeking expertise in advanced financial accounting. Enroll today to master the intricacies of acquisition, consolidation, and financial reporting in the ever-evolving accounting landscape.

Who this course is for:

Accounting professionals seeking to enhance their knowledge and skills in advanced financial accounting.
Finance professionals involved in consolidation and financial reporting processes.
Students pursuing degrees in accounting, finance, or related fields.
Business owners and managers interested in understanding complex accounting concepts.
Individuals preparing for professional certifications such as the CPA exam.

Advanced Financial Accounting: Acquisitions & Consolidations

What you'll learn

Explore related topics

Course content

Acquisition & Investments Overview16 lectures • 2hr 15min

Example Probs-Acquisition & Investments Overview3 lectures • 41min

Excel Prob - Acquisition & Investments Overview7 lectures • 2hr 1min

Consolidations of Wholly Owned Subsidiaries - Basic Consolidations4 lectures • 56min

Excel Probs-Consolidations of Wholly Owned Subsidiaries-Basic Consolidations5 lectures • 1hr 44min

Consolidations of Less Than Wholly Owned Subsidiaries4 lectures • 45min

Example Probs-Consolidations of Less Than Wholly Owned Subsidiaries2 lectures • 34min

Excel Prob-Consolidations of Less Than Wholly Owned Subsidiaries3 lectures • 1hr 8min

100% Owned Subsidiary Purchased A More Than Book Value4 lectures • 51min

Example Probs-100% Owned Subsidiary Purchased A More Than Book Value7 lectures • 2hr 1min

Requirements

Description

Who this course is for: