Accounting for Business Combinations

Timely and technically accurate accounting is indispensable to a successful business combination. This two-day seminar covers accounting for acquisitions (ASC 805), non-controlling interests (ASC 810), intangible assets (ASC 360), goodwill (ASC 350), and the related deferred tax effects. Rather than merely describing these standards, we endeavor to explain their logic and consequences via hands-on spreadsheet-based examples and real cases. We provide the journal entries necessary to apply these standards as well as discuss the implications of these standards to M&A structuring and their future EPS consequences. This facilitates effective collaboration with the finance team.

Agenda

• Overview of ASC 805 (FAS 141R and FAS 160) with Simple Examples
• Introduction to Tax Issues Relating to Business Combinations
• Detailed Requirements of ASC 805
• Computing the Cost of Acquiring the Target
• Contingent Consideration and Share-Based Awards
• Allocating the Acquisition Cost to the Acquired Asset and Assumed Liabilities
• Understanding ASC 350-20 and ASC 350-30 (FAS 142) Related to Goodwill
• Accounting for Non-Controlling Interests (ASC 810)
• Taxable Transactions and Tax Deductible Goodwill