ACC615M

Course Description

Examination of concepts of accounting for business combinations, with emphasis on the consolidation and financial reporting of parent/subsidiary relationships. Accounting for the formation, operation, and liquidation of partnerships, foreign currency translation and hedging, segment reporting, and international financial reporting standards.

Learning Outcomes

• Apply latest accounting to acquisitions through the ‘equity method and purchase method.’
• Evaluate and apply the generally-accepted accounting principles relating to business combinations under the ‘parent company theory’ and the ‘entity theory,’ including upstream and downstream inventory effects.
• Analyze information for consolidated financial statements under the purchase method, including incomplete equity method and cost method of parent company accounting.
• Apply inter-company profit transactions for assets, bonds, as well as indirect, mutual holdings, and joint venture.
• Apply appropriate accounting principles relating to the translation of foreign currency for consolidated financial statements of multinational companies, including foreign currency derivatives and hedging activities.
• Analyze partnership-related transactions and properly account for the formation, operations, termination (admission of new partners or withdrawal of partners), and the liquidation of a partnership.
• Apply proper accounting treatment for corporate liquidation, legal reorganization and debt restructurings for financial distressed corporations.
• Evaluate worldwide accounting diversity and compare U.S.GAAP against International Financial Reporting Standards in the major areas.
• Research and evaluate latest accounting issues and topics for better translation of business transactions from GAAP and International Financial Reporting Standards.

Prerequisites

• ACC612M