Advanced Financial Accounting ACNE 4325

Course description:

The course discusses advanced topics in accounting such as accounting principles and procedures related to business combinations. Accounting for stock investments methods, Equity Method when there is a significant influence, and Cost/Fair value method.
Methods and tools for preparing consolidated financial statements, Consolidation Techniques and Procedures, Intercompany transactions, Plant Assets, bonds and debts.

Course Aims:

  • Recognize, understand and properly account for a variety of business combinations.
  • Properly prepare consolidated financial statements as of the date of acquisition and for periods subsequent to the date of acquisition, including proper assignment, depreciation and amortization of any difference between cost and book values.
  • Understand the parent company and entity theories of consolidated statements and their relation to present reporting practices.
  • Explain how to account for Intercompany transactions and the influence on the consolidation financial statements.

Course outcomes:

At the completion of the subject, students should be able to: 
  • Apply the equity method to accounting for investments.
  • Discuss difference issues relating to acquisition methods of accounting for Merger and Acquisition activities. 
  • Determine the total cost of the acquisition and allocate that cost to specific subsidiary accounts, goodwill, or an extraordinary gain.
  • Understand the meaning of the term "noncontrolling interest” and Identify and calculate the noncontrolling interest that must be included within the consolidation financial statement.
  • Understand intercompany transactions within the financial records of the individual companies that must be eliminated or adjusted prior to production of consolidated financial statements.
  • Prepare consolidated financial statement.