Designed for auditors who are new to business combination transactions, this course provides a practical introduction to accounting for business combinations under ASC 805. Through an extensive case study and real-world examples, participants learn a step-by-step approach to applying the acquisition method.
Learning Objectives
After completing this session, participants will be able to:
- Understand and use unique terminology used in business combination accounting.
- Navigate the key documents involved in a business combination transaction and identify the key provisions within those documents.
- Identify selected advanced issues present in certain business combinations.
- Apply the acquisition method to record a business combination.
Program Description
Business combinations are among the most technically complex areas of accounting, requiring professionals to navigate specialized terminology, transaction documents, valuation concepts, and the acquisition method under ASC 805. This course breaks those concepts into manageable steps through practical exercises, interactive discussions, and an engaging case study.
Participants learn the terminology, key transaction documents, acquisition method, and common issues encountered in business combinations through practical examples, interactive discussions, and knowledge checks that reinforce learning throughout the session.
Topics include:
- Business combination terminology and foundational concepts
- Defining a business and distinguishing business combinations from asset purchases
- Understanding change in control, noncontrolling interests, and ASC 805 scope
- Reviewing key transaction documents, including letters of intent, purchase agreements, valuation reports, and closing documents
- Applying the acquisition method, including identifying the acquirer, determining the acquisition date, recognizing assets and liabilities, measuring consideration transferred, and recognizing goodwill or bargain purchase gains
- Identifying common business combination issues, including contingent consideration, indemnification assets, common intangible assets, share compensation arrangements, leases, and other transaction-specific considerations
Course Information
| Delivery Methods | Group Live Group Internet |
| Fields of Study | Accounting (3) |
| CPE Credits | 3 Credits |
| Prerequisites | None |
| Level | Basic |
| Advance Preparation | None |
Course Outline
| Module Title | MIN. |
|---|---|
| Introduction & Background | 10 |
| Definitions and scope | 10 |
| Overview of business combination related agreements and key documents | 20 |
| Steps to application of the acquisition method | 80 |
| Issue identification | 30 |
| Total | 150 |
Ready to continue your learning? Explore our Advanced Accounting for Business Combinations session to build on these foundational concepts.
