Consolidation, Business Combinations And Investment Accounting


Consolidation, Business Combinations And Investment Accounting
Location: UAE
Category: Finance, Accounting and Banking, Soft Skills


Organizations are getting into increasingly complex business transactions. Business combinations and forming strategic partnerships and alliances are becoming the norm for many organizations. Additionally, treasury departments are making daily decisions to invest available funds in order to maximize the return on investments.

Accounting and finance professionals contained to be ready to help business understand the effect of recording such transactions on company’s financials. This coaching discusses the accounting treatment for these transactions and highlights the most recent standards updates in these matters.

Course Objectives

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

  • Identify different types of financial instruments and the accounting techniques for each
  • Account for investment transactions according to assets method
  • Explain business combinations and their associate transactions
  • Apply the acquisition method for business combinations
  • Recognize the improvement of consolidating financial statements
  • Point out and account for goodwill and non-controlling interests
Who Should Attend?

Financial managers and controllers, accounting managers, superior accountants, financial analysts, investment accountants, general ledger accountants, financial assistants, and any qualified involved in accounting for business combinations and consolidations and professionals who wish to understand accounting for financial instruments

Course Outline

Financial Instruments

  • Categories of investments
  • Presentation of financial instruments
  • Distinguishing liabilities from equity
  • Classification of instruments:
    • Held-To-Maturity (HTM) debt securities
    • Trading Securities (TS)
    • Available-For-Sale securities (AFS)
    • Fair amount through earnings and loss option
  • Determining fair value
  • Initial and subsequent measurement
  • Reclassification and transfer between categories
  • Constraints on reclassifications
  • DE recognition 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 assets 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 assets investment
  • Change in level of ownership or grade of influence
  • Accounting for impairment

Transactions Accounted For As Business Combinations

  • Defining a qualifying business
  • Structures of business combinations
  • IFRS and US Generally Accepted Accounting Principles (GAAP) consideration

Accounting For Business Combinations

  • Applying the acquisition method
  • Identifying the acquirer
  • Recognizing and measuring the identifiable tangible and intangible assets acquired and liabilities assumed
  • Classifying or designating identifiable assets acquired and liabilities assumed
  • Recognizing and measuring any non-controlling interest
  • Measuring the consideration transferred
  • Recognizing and measuring goodwill or earnings from a bargain purchase
  • Acquisition associate costs
  • Accounting for earnings 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 of assets
  • Contingent consideration

Goodwill Measurement

  • Measurement of goodwill
  • Impairment of goodwill
Course Methodology

A variety of methodologies will be used during the coaching that includes:

  • (30%) Based on Case Studies
  • (30%) Techniques
  • (30%) Role Play
  • (10%) Concepts
  • Pre-test and Post-test
  • Variety of Learning Methods
  • Lectures
  • Case Studies and Self Questionaires
  • Group Work
  • Discussion
  • Presentation
Course Fees

This cost includes participant’s manual, Hand-Outs, buffet lunch, coffee/tea on arrival, morning & afternoon of each day.

Course Timings

Daily Course Timings 08:00 – 08:20       Morning Coffee / Tea 08:20 – 10:00       First Session 10:00 – 10:20       Coffee / Tea / Snacks 10:20 – 12:20       Second Session 12:20 – 13:30       Lunch Break & Prayer Break 13:30 – 15:00       Last Session

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