Advanced Accounting

In addition to your class tuition and study materials, you will receive the following:


Case Study

• Review of published financial statements to focus on the impact of associates

Exercises

• Calculate the impact of different treatments on distributable profits
• Identify when subsidiary status applies
• Calculate the impact of different group accounting methodologies
• Identify related parties
• Valuing goodwill on acquisition of a business
• Determining when intangible assets could be recognised
• Determining the extent to which revenues can be legitimately recognised

Other Extras

• Certificate of attendance

Level: Advanced


Synopsis:
A company's financial statements tell the story of that business, but as with any good book, they can be understood on several levels. In your role as a literary critic you need to have an understanding not only of the terminology but also the impact of the subjects normally seen as the domain of an accountant. This course examines the recognition and measurement of issues fundamental to really understanding how commerce and accounting interact. This will enable you to become the 'story teller'.


At the end of the course participants will be able to: Explain the impact of share based payment accounting on profitability . Apply the principles of revenue recognition . Understand what segmental reporting by a client will and will not tell you . Understand the international accounting treatment for pensions and why its introduction to the UK was so controversial . Identify related parties and transactions between them . Explain why different intangibles have different accounting treatments and the impact on profitability . Understand the principles of group financial statements including: - Differences between acquisition, equity and merger accounting - Inter-company trading and financing - Unrealised profits .


Prerequisites:
To be familiar with the basic components of financial statements such as the layout of a balance sheet and income statement.


Suitable For:
Anyone who already has a grasp of the basics of financial statements interpretation, and would now like to move to the next level looking at issues that are prevalent in the commercial world.


Global harmonisation

• Progress on developing a global GAAP

Intangibles

• Purchased and internally generated goodwill
• Positive and negative goodwill
• Brands
• Patents, franchises etc.
• Capitalised and development expenditure

Acquisition accounting

• Subsidiaries and quasi-subsidiaries
• Single entity concept
• Consolidated financial statements - the basics
• Intra-company trading
• Intra-group dividends
• Mixed and vertical groups

Equity accounting

• Associated compared to joint ventures and joint arrangements
• The significance of not being part of the single entity

Merger accounting

• Why it is being prohibited

Segmental reporting

• Contrasting legal and accounting requirements
• Why is the latest guidance so controversial?
• What is a reportable segment?

Related parties

• Spotting related parties
• Presumed and deemed related parties
• Two way materiality - a UK anomaly
• Value is irrelevant
• Helpful disclosure

Revenue recognition

• Basic principles
• Comparison with international rules
• Sale of goods vs. sale of services

Pensions

• Funded vs. unfunded schemes
• Why defined benefit schemes cause an accounting problem
• How international accounting treatment provides a solution

Share Based Payment

• Applying the concept of matching
• Equity settled vs. cash settled

Opportunities for creative accounting

• Popular strategies to manipulate financial position and performance