Accounting for Mergers & Acquisitions

Course Content:

The concept of control

• Parent and subsidiary undertakings
• Special purpose entities and arrangements
• Quasi-subsidiaries

Consolidated accounts

• The basic techniques
• Goodwill, minority interests, capital reserves

Complex group structures

• Sub-groups
• D-shaped groups
• Vertical groups
• Step-by-step acquisitions

Acquisition or merger? The qualifying criteria

• Acquisition accounts – valuing the consideration given (including contingent and deferred consideration), the treatment of indirect costs of the purchase
• Assigning fair values on acquisition and calculating goodwill
• Accounting for goodwill – the old and new treatments
• Merger accounting – key differences to acquisition accounts
• Disposal of subsidiaries (discontinued activities)

Other group arrangements

• Associates
• Joint ventures
• Joint arrangements that are not entities (JANEs)
• Special purpose entities, quasi-subsidiaries and variable interest entities
• Disclosure of group and other related parties
• Exemptions for sub-groups, small and medium sized groups and for parent company accounts
• Cross border issues – treatment of intra-group foreign exchange gains and losses

Discounts available for multiple participants:

• 3-4 participants: 15% discount per participant
• 5-6 participants: 20% discount per participant
• 7-8 participants: 25% discount per participant
• 9 or more participants: 30% discount per participant