Accounting for Business Combinations

One day - 8 CPE credits

Learn to apply the business combinations accounting standard in a pragmatic, practical way.

In this workshop you will interact with the instructor to:

• Understand the expanded definitions of a business and a business combination

• Learn the details of acquisition accounting, including expensing transaction and exit costs

• Review expanded use of fair value, including to measure contingent consideration

• Understand the issues in “Day Two” accounting

• Understand the implications of the measurement period including retrospective adjustment

• Learn recent implementation issues

• Solve case study problems

• Understand related SEC staff hot buttons and review examples

• Understand the impact on your annual goodwill impairment test

AGENDA

8:00-8:30 a.m. – Registration/Continental Breakfast

8:30-8:40 a.m. – Welcome, Introduction, and Course Overview

8:40-9:00 a.m. – Major Changes and Considerations

• What are the major changes?

• Who needs to know in your company?

• Will this affect due diligence and acquisition decisions?

• Interaction with SFAS 157, the fair value measurements standard

9:00-10:00 a.m. – The Acquisition Method, plus Implementation Issues

• Is there a business combination? – changes in the definition

• Acquirer?  Purchase price?  Acquisition date?

• Contingent purchase price

• Recognition principle

• Measurement principle

• Assets and liabilities arising from contingencies – guidance revised

• Implementation issues related to certain assets and liabilities

10:00-10:15 a.m. – Refreshment Break

10:15-Noon – The Acquisition Method (concluded)

Noon-1p.m. – Lunch

1:00-2:30 p.m. – The Acquisition Method - More Details & Some Oddities

• Exceptions to recognition and measurement, including

  • Income taxes

  • Employee benefits

  • Share-based payments

• Accounting for a Bargain Purchase Step acquisitions

• Measurement period

• How do you treat costs of the acquisition?

• Restructuring costs

• Subsequent measurement and accounting

• Disclosures

• Effective date and transition

• Examples

2:30-2:45 a.m. – Refreshment Break

2:45-3:45 p.m.– Breakout Examples, Before and After 141R

3:45-4:30 p.m.– Subsequent Accounting for Goodwill and the Impact of 141R

4:30-4:40 p.m. – Wrap-up

BACK TO TOP

Learning Objective: To learn the requirements of and how to implement Business Combinations in Consolidated Financial Statements.
Delivery Method: Group-Live
Prerequisites/Advance Preparation: None
Program Level: Intermediate.