Advanced Financial Accounting
Intercorporate investments and group reporting under IFRS, with ASPE differences: classifying investments by influence, the equity method and joint arrangements under IAS 28 and IFRS 11, business combinations and goodwill under IFRS 3, consolidated statements at and after acquisition under IFRS 10 with non-controlling interest, intercompany inventory, asset and bond transactions, step acquisitions and changes in ownership, control of structured entities and investment entities, foreign currency transactions and hedge accounting under IAS 21 and IFRS 9, translating foreign operations, and partnerships, trusts and segment reporting under IFRS 8, following one invented Canadian group throughout.
ACCT-311 Year 3 3 credits 12 lessons · 5 h 40 min
Offered by HSM University · Accounting
This is the Canadian version of this course. See the American version.
What you'll learn
- Classify intercorporate investments as passive, significant influence, joint control or control, and select fair value, equity method or consolidation under IFRS 9, IAS 28, IFRS 11 and IFRS 10, noting the ASPE policy choices.
- Apply the equity method, including acquisition differentials, unrealized intercompany profits, dividends, impairment and joint ventures, and contrast joint operations.
- Apply the acquisition method of IFRS 3 to a business combination: identify the acquirer, measure consideration including contingent consideration, recognize identifiable assets and liabilities at fair value, and measure goodwill or a bargain purchase.
- Prepare a consolidated statement of financial position at the date of acquisition, measuring non-controlling interest at fair value or at its proportionate share of identifiable net assets.
- Prepare consolidated statements in later years, amortizing the acquisition differential, testing goodwill for impairment and attributing profit and equity to owners of the parent and NCI.
- Eliminate intercompany sales, balances and unrealized profits on inventory and services, distinguishing upstream from downstream transactions and their effect on NCI.
- Eliminate intercompany gains on depreciable assets and land and the constructive gains or losses that arise when a group member acquires another member's bonds.
- Account for step acquisitions, changes in ownership that do not affect control, loss of control and indirect holdings.
- Assess control of structured entities using power, variable returns and the link between them, including de facto control, principal-agent relationships and investment entities.
- Record foreign currency transactions under IAS 21 and account for forward contracts and fair value, cash flow and net investment hedges under IFRS 9, noting ASPE simplifications.
- Determine functional currency and translate or remeasure the statements of a foreign operation, including goodwill, intercompany loans, disposal and hyperinflation.
- Account for partnership formation, profit sharing, admission, retirement and liquidation, describe trust accounting, and identify reportable operating segments using the management approach.
Course content
12 lessons · 5 h 40 min total · final exam
- 1 Intercorporate investments: an overview 27 min · quiz
- 2 The equity method and joint arrangements 29 min · quiz
- 3 Business combinations: the acquisition method 31 min · quiz
- 4 Consolidation at the date of acquisition 27 min · quiz
- 5 Consolidation after acquisition: the acquisition differential and NCI 30 min · quiz
- 6 Intercompany inventory and other profits 30 min · quiz
- 7 Intercompany depreciable assets and bonds 27 min · quiz
- 8 Changes in ownership interest 31 min · quiz
- 9 Control and structured entities 25 min · quiz
- 10 Foreign currency transactions and hedging 28 min · quiz
- 11 Translating foreign operations 25 min · quiz
- 12 Partnerships, trusts and segment reporting 30 min · quiz
- E Final exam 20 questions
Requirements
Recommended background. You can start any course at any time.
Description
Intercorporate investments and group reporting under IFRS, with ASPE differences: classifying investments by influence, the equity method and joint arrangements under IAS 28 and IFRS 11, business combinations and goodwill under IFRS 3, consolidated statements at and after acquisition under IFRS 10 with non-controlling interest, intercompany inventory, asset and bond transactions, step acquisitions and changes in ownership, control of structured entities and investment entities, foreign currency transactions and hedge accounting under IAS 21 and IFRS 9, translating foreign operations, and partnerships, trusts and segment reporting under IFRS 8, following one invented Canadian group throughout.
Part of the Business stream, typically taken in year 3.