Financial Statements Consolidation and Investment Accounting

Objectives:

By the end of the program, participants will be able to:

• Recognize the process of consolidating financial statements.
• Identify business combinations and their related transactions.
• Apply the acquisition method for business combinations.
• Account for goodwill and non-controlling interests.
• Identify different types of financial instruments and accounting methods for each.
• Account for transactions according to fair value method, equity method and amortized cost.
• Recognize differences and similarities between International Financial Reporting Standards (IFRS) and the US Generally Accepted Accounting Principles

The Content:

Financial Instruments

• Categories of Investments
• Presentation of Financial Instruments
• Distinguishing Liabilities from Equity
• Classification of Instruments:
• Held-to-Maturity Debt Securities (HTM)
• Trading Securities
• Available-for-Sale Securities (AFS)
• Fair Value through Profit and Loss Option
• Determining Fair Value
• Initial and Subsequent Measurement
• Reclassification and Transfer between Categories
• Constraints on Reclassifications
• Derecognition of Financial Instruments
• Impairment of Financial Assets Carried at Amortized Cost
• Impairment of Financial Assets Carried at Fair Value
• Impairment of Financial Assets Carried at Cost
• Accounting for Sales of Financial Instruments
• The Recent Accounting Updates According to IFRS 9

Investments in Associates

• Accounting Based on the Equity Method
• Situations when Cost Method is Applicable
• Differences in Fiscal Year
• Intercompany Transactions between Investor and Investee
• Accounting for a Partial Sale or Additional Purchase of Equity Investment
• Change in Level of Ownership or Degree of Influence
• Accounting for Impairment

Transactions Accounted for as Business Combinations

• Defining a Qualifying Business
• Structures of Business Combinations
• IFRS and US GAAP Consideration

Accounting for Business Combinations

• Applying the Acquisition Method
• Identifying the Acquirer
• Recognizing and Measuring the Identifiable Tangible and Intangible Assets Acquiredand Liabilities Assumed
• Classifying or Designating Identifiable Assets Acquired and Liabilities Assumed
• Recognizing and Measuring any Noncontrolling Interest
• Measuring the Consideration Transferred
• Recognizing and Measuring Goodwill or Gain from a Bargain Purchase
• Acquisition Related Costs
• Accounting for Gain on Bargain Purchase Option

Consolidated Financial Statements

• Defining "Control"
• Changes in Ownership Interest without Loss of Control
• Changes in Ownership Interest Resulting in Loss of Control
• Consolidation Procedures
• Intercompany Transactions and Balances

Post Combination Measurement and Accounting

• Reacquired Rights
• Contingent Liabilities
• Indemnification Assets
• Contingent Consideration

Goodwill and Gain on Bargain Purchase Options

• Measurement of Goodwill
• Impairment of Goodwill