Business combinations are one of the most complex areas of accounting for many companies. This two-day course provides a comprehensive review of US GAAP rules (ASC 805) that guide the accounting for business combinations and related goodwill. Presented with illustrative examples, the theory and application of the acquisition method is demonstrated, complemented by discussion of the rules in an interactive group environment, utilising a comprehensive case study and financial statements. This programme answers questions such as:
- What is included and what is excluded when calculating the acquisition price in a business combination?
- How are fair value determinations made?
- How do contingent payments (earnouts) affect the determination of cost?
- How are special recognition and measurement rules applied to contingent liabilities, contingent assets and intangible assets?
- What is the accounting for deferred income taxes arising out of a business combination?
- How is goodwill calculated and evaluated for impairment?
- What is the accounting for stock options assumed in an acquisition?
- What are the required disclosures?