Accounting for Business Combinations Overview

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Kelen Camehl, MBA

Kelen Camehl CPA

  • CPA
  • CMA
  • CIA

Before starting this self study program, please go through the instructional document.

Overview

  • Definition of a Business
  • The Acquisition Method
  • Business Combination Achieved in Stages
  • Measurement Period
  • Subsequent Measurement
  • Financial Statement Disclosures
  • Income Tax Considerations
  • Asset Acquisition vs. Business Combination

Course Description

The rules for business combinations and consolidations are complex. Accounting for any business combination transaction under ASC 805 can be complex; even for entities that have gained valuable experience by having grown their businesses through acquisitions. Each acquisition transaction has its own unique set of facts and circumstances, many of which can have a significant impact on how an entity should initially account for the transaction and apply the relevant accounting guidance in subsequent reporting periods. This can present unique challenges for preparer organizations and their accounting and tax department personnel that are responsible for accounting and reporting these activities in the entities’ financial statement. This text based webinar will explore some of the more complex issues that acquisitive entities are facing as they address the accounting and reporting for business combination transactions.

This course provides an in-depth overview of the accounting and reporting requirements with respect to business combinations as prescribed by Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 805, Business Combinations.

Major Topics Covered: 

  • Review accounting and reporting for acquisitions, consolidations and noncontrolling interests
  • Learn to recognize and record acquisitions appropriately
  • Operating Leases
  • Recognition Exceptions
  • Exceptions to the Measurement Principle
  • Recognizing and Measuring Goodwill or Gain from a Bargain Purchase
  • Financial Statement Disclosures

The overall objective of the guidance included within ASC 805 is to improve the relevance, representational faithfulness, and comparability of the information that a reporting entity provides in its financial reports about a business combination and its effects.  

Learning Objectives

  • Identify the definition of a business as it relates to a business combination transaction
  • List the steps involved in the acquisition method
  • Identify the acquisition date for a business combination
  • Recognize how to measure goodwill and gains from bargain purchases
  • Identify the measurement period for business combinations

Who Should Attend?

  • Accountant
  • CPA - Small Firm
  • CPA - Mid Size Firm
  • Accounting Firm
  • Young CPA
  • CPA in Business
  • Entrepreneurial CPA
  • Tax Accountant (Industry)
  • Accounting Practice Owners
  • Senior Accountant
  • Accounts Director
  • Chief Accounting Officer
  • Entrepreneurial Accountant
  • Accounting Managers
  • Staff of Accounting Firm

Testimonial

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