Advanced Financial Accounting
Intercorporate investments and group reporting under US GAAP, with IFRS contrasts: classifying investments under ASC 321 and ASC 323, the equity method and joint ventures, business combinations and goodwill under ASC 805, consolidated statements at and after acquisition with noncontrolling interest, intercompany inventory, asset and bond transactions, step acquisitions and changes in ownership, variable interest entities and the voting interest model under ASC 810, foreign currency transactions and hedge accounting under ASC 830 and ASC 815, translation and remeasurement of foreign entities, SEC disclosures, and partnerships, trusts and segment reporting under ASC 280, following one invented US group throughout.
ACCT-311 Year 3 3 credits 12 lessons · 5 h 38 min
Offered by HSM University · Accounting
This is the American version of this course. See the Canadian version.
What you'll learn
- Classify intercorporate investments as passive, significant influence, joint venture or controlling financial interest, and select fair value, equity method or consolidation under ASC 321, ASC 323 and ASC 810.
- Apply the equity method, including acquisition differentials, unrealized intercompany profits, dividends, impairment and joint ventures, and contrast joint operations.
- Apply the acquisition method of ASC 805 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 gain.
- Prepare a consolidated balance sheet at the date of acquisition, measuring the noncontrolling interest at fair value as ASC 805 requires, and contrast the IFRS proportionate option.
- 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.
- Determine whether a legal entity is a variable interest entity, identify its primary beneficiary, and apply the voting interest model to other entities, contrasting IFRS 10 de facto control.
- Record foreign currency transactions under ASC 830-20 and account for forward contracts and fair value, cash flow and net investment hedges under ASC 815, including SEC market risk disclosure.
- Determine functional currency and translate or remeasure the statements of a foreign entity, including goodwill, the cumulative translation adjustment, disposal and highly inflationary economies.
- 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 38 min total · final exam
- 1 Intercorporate investments: an overview 27 min · quiz
- 2 The equity method and joint arrangements 28 min · quiz
- 3 Business combinations: the acquisition method 31 min · quiz
- 4 Consolidation at the date of acquisition 26 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 Variable interest entities and the voting interest model 25 min · quiz
- 10 Foreign currency transactions and hedging 28 min · quiz
- 11 Translation and remeasurement of foreign entities 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 US GAAP, with IFRS contrasts: classifying investments under ASC 321 and ASC 323, the equity method and joint ventures, business combinations and goodwill under ASC 805, consolidated statements at and after acquisition with noncontrolling interest, intercompany inventory, asset and bond transactions, step acquisitions and changes in ownership, variable interest entities and the voting interest model under ASC 810, foreign currency transactions and hedge accounting under ASC 830 and ASC 815, translation and remeasurement of foreign entities, SEC disclosures, and partnerships, trusts and segment reporting under ASC 280, following one invented US group throughout.
Part of the Business stream, typically taken in year 3.