RCA0024 – Accounting Principles for M&A

COURSE DESCRIPTION

In this course, you will learn how to apply accounting and federal income tax principles to project earnings and cash flows, specifically of the post-combination entity.

To drive concepts home, you will work on real world examples and journal entries for common to complex M&A; accounting treatments.

This course is part of the New York Institute of Finance’s popular Mergers & Acquisitions Professional Certificate program.

LEARNING OUTCOMES

• Overview of the Equity Methods of Consideration
• Cost method, its sub-categories, and consolidation
• Basics of purchase accounting and the steps to record a acquired balance sheet
• Internal Revenue Code Section 338(G)
• Tax-deductibles Goodwill and Intangibles

Syllabus

Session 1: Equity Methods of Consolidation

• Lesson 1: General Accounting Guidelines
• Lesson 2: Significant Control
• Lesson 3: Summary of Accounting Under the Equity Model
• Lesson 4: Dividends and Excess of Costs over Book Equity
• Lesson 5: Adjustments for Intercompany Transactions
• Lesson 6: Tax Considerations of the Equity Method
• Lesson 7: Cash Flow Accounting in Equity Methods
• Class Exercise

Session 2: Cost Method and Consolidation

• Lesson 1: The Cost Method
• Lesson 2: Four Sub-Categories of the Cost Method
• Lesson 3: Consolidation
• Lesson 4: Minority Interests

Session 3: Purchase Accounting

• Lesson 1: Purchase Accounting Basics
• Lesson 2: Steps to Record Acquired Balance Sheet
• Lesson 3: Step 1: Eliminate Existing Goodwill
• Lesson 4: Step 2: Reduce Equity Accounts
• Lesson 5: Step 3: Adjusting Assets and Liabilities to FMV
• Lesson 6: Step 4: Intangible Assets
• Lesson 7: Step 5: Record Unrecognized Restructuring Charges
• Lesson 8: Fair Value of Consideration
• Lesson 9: Fair Value of Contingent Payment
• Lesson 10: Calculating Goodwill
• Lesson 11: Non-Controlling Interests
• Lesson 12: Accretion and Dilution

Session 4: Special Topics – Internal Revenue Code Section 338(G) and 338(H)(10) Transactions

• Lesson 1: Section 338 Overview
• Lesson 2: Tax-deductible Goodwill and Intangibles
• Lesson 3: NOL Carryforwards and Others