Aims

This module covers the accounting for business combinations under the current
standard IFRS 3. As well as reviewing the fundamentals of accounting for
business investments such as associate and joint ventures, we will carry out a
detailed review of merger accounting and specifically the issues surrounding
acquisition accounting of subsidiaries in consolidate accounts in M&A
transactions. This will include detailed case studies and calculations using
the full goodwill method including analysis of non-controlling interests and
pre-existing stakes in acquired companies.

A full analysis of fair value accounting and its impact on post merger
accounts will also be carried out, together with a review of current equity
analysts’ practices regarding amortisation of acquisition intangibles.
We will also cover current rules regarding the accounting treatment of and
tax deductibility of the different types of transaction expenses.

 

Objectives

At the end of the workshop, delegates will understand:

  • the accounting alternatives for the presentation of non-controlling stakes and
    joint ventures in consolidated accounts
  • the Full Goodwill method and the treatment of non-controlling interests at
    the target and existing stakes in the target
  • fair value adjustments, the analytical challenges of pre-empting the results
    of a purchase price allocation exercise and the market’s approach to adjusting
    for the amortisation of acquisition intangibles

 

Who should attend?

  • Finance and accounting
  • Fund managers
  • Trainee equity analysts
  • Investment professionals
  • Trainee credit analysts
  • Legal and compliance
  • New entrants
  • HR and training
  • Risk management