IFRS Accounting for Business Combinations (2 days)

Course code: 1230

Introduction

Accounting for business combinations can present considerable challenges for IFRS preparers. This two-day program provides a comprehensive understanding of, and hands-on practice in, applying the IFRS requirements on business combinations and on acquiring interests in joint arrangements and associates.

Our specialist instructors will explain and review the relevant parts of the following IFRS standards:

  • IFRS 3 Business Combinations
  • IFRS 10 Consolidated Financial Statements
  • IFRS 11 Joint Arrangements
  • IFRS 12 Disclosure of Interests in Other Entities
  • IAS 28 Investments in Associates and Joint Ventures

Using illustrative examples and real world financial statements, the theory and practical application of the acquisition method of accounting for business combinations is demonstrated in an interactive group environment. The program also gives delegates a sound understanding of the requirements and methodology for accounting for acquiring and losing control of interests in joint arrangements and associates.

The course answers questions such as:

  • What constitutes a ‘business?
  • What is included and excluded when calculating the consideration transferred in a business combination?
  • How are contingent payments, subsequent fair value adjustments, contingent liabilities and intangible assets treated in a business combination?
  • How are goodwill and non-controlling interests measured?
  • How does IFRS 10's definition of control affect the scope of consolidated financial statements?
  • What adjustments are needed when applying the equity method of accounting?
  • How does IFRS 11 impact the treatment of joint arrangements?

Topics

  • Acquisitionaccounting – IFRS 3
    • Definition of a business and identifying a business combination
    • Identifying the acquirer
    • Determining the acquisition date and consideration transferred
    • Recognizing and measuring identifiable assets acquired, liabilities assumed, and non-controlling interests
      • Recognition principle
      • Measurement principle
      • Exceptions to the recognition and measurement principles
    • Recognizing and measuring goodwill or a gain from a bargain purchase
      • Bargain purchases
      • Consideration transferred
      • Contingent consideration
      • Testing goodwill for impairment
    • Business combinations achieved in stages
    • Business combinations achieved without the transfer of consideration
    • Provisional fair values and measurement period adjustments
    • Subsequent measurement and accounting
      • Reacquired rights
      • Contingent liabilities
      • Indemnification assets
      • Contingent consideration
    • Disclosures
  • Consolidated financial statements – IFRS 10
    • Determining control
    • Accounting for changes in ownership interests
    • Disclosure of interests in other entities – IFRS 12
  • Joint arrangements – IFRS 11
    • Joint control
    • Accounting for joint operations
    • Accounting for joint ventures
  • Investments in associates and joint ventures – IAS 28
    • Acquisition and loss of significant influence
    • Applying the equity method
    • Impairment testing – IAS 36

Teaching method

  • Group live instruction with active participation encouraged, cases, examples, group work, open discussions
  • Review of the general requirements of IFRS 3 Business Combinations
  • Demonstration of accounting issues relating to acquiring interests in associates and joint arrangements
  • Extensive hands-on case studies completed in an interactive group environment to demonstrate key points and practical application
  • All participants receive a comprehensive binder containing copies of the presentation slides, handouts and other course materials

Prerequisites

Basic understanding of accounting for business combinations and consolidations under any GAAP. No advance preparation is required for this course.

Course benefits

  • Differentiate between the different levels of investment and identify the appropriate accounting treatment
  • Perform a purchase price allocation exercise and calculate goodwill by applying the rules in IFRS 3 Business Combinations
  • Evaluate the impact of contingent consideration and implement the special recognition and measurement rules for contingent liabilities
  • Demonstrate an understanding of IAS 36 by performing an impairment test on goodwill
  • Perform equity accounting for an associate or joint venture by applying IAS 28
  • Identify the two forms of joint arrangement and apply the appropriate accounting methods

Who should attend?

Individuals with interests in, or responsibilities for, preparing IFRS consolidated financial statements following business combinations and/or acquisitions of interests in associates or joint arrangements:

  • Accountants with group reporting responsibilities
  • Professionals involved in M&A transactions
  • Internal  auditors
  • Analysts and advisors
  • Systems professionals

CPE / CPD Accreditation

NASBA

IASeminars is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org. 


Field of study: Accounting

ICAEW Partner in Learning

IASeminars is proud to have been named as an ICAEW Partner in Learning, working together to offer the ICAEW IFRS Certificate to our clients worldwide. ICAEW (The Institute of Chartered Accountants in England and Wales) is a world leading professional membership organisation that promotes, develops and supports over 145,000 chartered accountants worldwide. CPE certificates obtained from attending IASeminars courses are an ideal way for ICAEW members and others to demonstrate their continuing professional development, provided that the topic is relevant to their learning and development needs.

New York State Board of Public Accountancy

IASeminars is registered with the New York State Board of Public Accountancy as a CPE sponsor. Our CPE Sponsor ID is: 002546. This registration does not constitute an endorsement by the Board as to the quality of our CPE Program.

Texas State Board of Public Accountancy

IASeminars is registered with the Texas State Board of Public Accountancy as a CPE sponsor. Our CPE Sponsor ID is: 009689. This registration does not constitute an endorsement by the Board as to the quality of our CPE Program.

Venue

  • Our London seminars take place in 4 star professional conference facilities, generally in city-centre hotels like the Marriott, Sheraton or Hilton brands. Detailed Joining Instructions are sent to all registered delegates by email approximately one month before the event. The Joining Instructions will confirm exact venue details and nearby (or onsite) hotel recommendations with bedroom rates where available. Coffee and lunch will be provided.

Instructor(s)

  • Instructor TBC

    The instructor for this course will be drawn from one of our core faculty of subject matter experts. Further details will be published at the earliest opportunity.

    Saket Modi

    Saket Modi is a London-based financial trainer and consultant with over 15 years of professional experience. He specialises in delivering courses on advanced accounting, financial reporting and financial analysis topics, particularly with regards to International Financial Reporting Standards (IFRS), International Public Sector Accounting Standards (IPSAS), financial instruments and corporate finance. Saket has spent considerable time working, advising and training on complex IFRS matters - especially in relation to recognition and measurement of financial instruments. He has gained valuable experience working with both FTSE listed companies and also with Big 4 accounting firms. He has designed and facilitated workshops for banks and other financial institutions and also for corporates in the UK, Europe, Africa, Middle East and Asia, and was invited by the International Auditing and Assurance Standards Board® (IAASB®) to present a paper on IFRS 9 Financial Instruments at their board meeting in New York. Saket is a member of the Institute of Chartered Accountants of India, has completed the IFRS certificate course offered by the Institute of Chartered Accountants in England and Wales (ICAEW) and also holds the Diploma in IPSAS from the Chartered Institute of Public Finance and Accountancy (CIPFA). As well as being a qualified accountant, Saket is also a CFA® charterholder.

In House

To bring this course in-house please contact us and we will be pleased to assist

Course details

Course schedule

Select a start date for more details

27 Nov 2017 London

Course level:
Overview
CPE / CPD:
16 hours
Start date:
27 Nov 2017
Start time:
09:00
Finish date:
28 Nov 2017
Finish time:
18:00
Location:
London
Price:
GBP 1,750
Subject to UK VAT (Read more)
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