Course overview
Topics include strategic and legal issues in mergers and acquisitions; accounting for inter-corporate investments; takeovers through asset purchases and share purchases; consolidation;; foreign currency transactions and translation; disclosure and financial analysis issues (including segment reporting and related party disclosure).
Course learning outcomes
- Describe the different types of relationships amongst business entities and identify these relationships for financial reporting purposes
- Determine the 'reporting entities' for each inter-entity relationship, and explain the appropriate accounting policy choices.
- Demonstrate a thorough knowledge of relevant accounting standards and the ability to apply them to solve practical problems that arise from inter-entity relationships.
- Select the appropriate accounting techniques, as prescribed by the relevant accounting standards, and perform the accounting treatment for each type of inter-entity relationship (including preparing consolidated financial statements).
- Discuss the strategic, legal, and assurance issues associated with establishing inter-entity relationships, and generate recommendations.
- Communicate accounting policy choices and strategic recommendations and justify conclusions with reference to relevant laws and accounting standards.