Training Course: Accounting for Mergers and Acquisitions

Training Course Summary:

The purpose of this seminar is to familiarise participants with all aspects of accounting for mergers and acquisitions. The complexities of consolidation will be carefully explained and participants will grasp the accounting consequences of the different techniques, thereby enabling them to gain a better comprehension of published accounts and their interpretation. In particular the course will cover the potential treatments of goodwill, the necessary treatment and disclosures regarding joint ventures and alternate group structures.

Training Course Overview/Content:

The Concept of Control
Parent and subsidiary undertakings
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)
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)
Disclosure of group and other related parties
Exemptions for sub-groups, small and medium sized groups and for
parent company accounts
Cross border issues

Current issues - likely future developments in group accounts