- NY Credits : 6.0
- TX Credits : 6.0
As businesses grow and expand into global markets, complicated mergers and acquisitions become everyday occurrences. The increase in merger and acquisition activity brought greater attention to the fact that two transactions that are economically similar may be accounted for differently by companies, and thus, produce dramatically different financial results. Also, the growing volume of international business combinations heightened the urgency to eliminate cross-border differences in accounting standards for business combinations. There is currently an ongoing project to converge IFRS (International Financial Reporting Standards) with Generally Accepted Accounting Principles (U.S. GAAP). The definition of a business in GAAP is currently identical to the definition in IFRS, however, stakeholders have noted that the definition of a business is generally not applied as broadly in jurisdictions that apply IFRS as in jurisdictions that apply GAAP. This program reviews the current FASB authoritative guidance dealing with business combinations, including Accounting Standards Update 2017-01, 2018-09, and 2019-06.
Upon successful completion of this course, the user should be able to:
recognize the reasons why the FASB decided to require use of only the purchase method,
identify the ASC and ASU guidance for business combinations and intangibles,
identify a business, a business combination, and fair value,
recognize common control and accounting for combinations under common control,
recognize the measurement concepts of fair value at the acquisition date and the exceptions to the recognition and measurement concept,
recognize identifiable intangible assets,
identify the concepts of recognizing and measuring contingent consideration, and
recognize the general disclosure requirements.