Advanced Financial Reporting: Accounting for Business Combinations and Preparation of Consolidated Financial Statements from Coursera

What's inside

Syllabus

Course Orientation

You will become familiar with the course, your instructor and your classmates, and our learning environment. This orientation will also help you obtain the technical skills required to navigate and be successful in this course.

Module 1: Control of a Business

In this module, you will be introduced to the concepts of control over a business. You will learn different accounting methods used to account for investments in equity securities, the basics of control, the scope of "Business Combination" (ACS 805), as well as the methods to record an acquisition of a group under asset acquisition and business combination.

Module 2: Acquisition Method

In this module, you will be introduced to the acquisition method of accounting for a business combination. You will learn the measurement principles for an acquisition and the goodwill equation to calculate the goodwill or gain from a bargain purchase as a result of the business combination. You will also learn how to prepare the consolidated financial statements on the business combination date.

Module 3: Components of Consideration Transferred in a Business Combination

In this module, you will be introduced to different components of consideration transferred in a business combination. You will learn the measurement principles of share-based payment awards and will examine a real-life merger between Express Scripts and Medco companies. Moreover, you will be introduced to the concept of contingent consideration and learn the methods to classify, recognize, and record contingent considerations.

Module 4: Assets Acquired and Liabilities Assumed

In this module, you will gain a deeper understanding of the assets acquired and the liabilities assumed in a business combination. You will be introduced to different types of identifiable assets acquired, such as defensive intangible assets and in-process research and development (IPR&D), and the rules to recognize and measure them under U.S. GAAP and IFRS. You will also learn the difference between a taxable transaction and a non-taxable transaction and how to calculate deferred taxes on an acquisition date.

Module 5: Preparation of Consolidated Financial Statements After the Acquisition Date

In this module, you will learn how to prepare the consolidated financial statements after the acquisition date. The concept of accounting acquisition premium (AAP), and the methods to calculate identifiable and unidentifiable portions of the accounting acquisition premium will be introduced. You will also learn the effects of accounting acquisition premium on the consolidated financial statements and the relevant consolidation adjustments. Moreover, you will be introduced to intercompany inventory transactions and learn to make consolidation adjustments for intercompany inventory sales and intercompany inventory profits.

Module 6: Intercompany Transactions and Noncontrolling Interest

In this module, you will be introduced to more types of intercompany transactions as well as noncontrolling interests. You will learn the consolidation adjustments for intercompany transactions with depreciable assets and intercompany debt. The noncontrolling interest (NCI) will be introduced. You will learn the definition, calculation, and presentation of noncontrolling interest and net income attributable to NCI in the consolidated financial statements. You will also learn how to report consolidated retained earnings and the subsequent measurement of noncontrolling interests. Lastly, an example of consolidation with noncontrolling interest will be shown.

Module 7: Change in the Percentage of Ownership and Other Related Topics

In this module, we will explore the accounting rules for changes in the percentage of ownership of a Subsidiary and other topics that relate to business combinations. You will learn how to account for a business combination that was achieved in stages, and how to calculate the gain or loss on deconsolidation of the Subsidiary. Also, you will be introduced to the situation in which the Subsidiary acquires shares of the Parent and learn the methods to measure and record the transaction.

Module 8: Segment Reporting and Goodwill Impairment Test

In this module, you will be introduced to segment reporting and the goodwill impairment test. You will learn the rules for public companies to disclose segment information in the notes to annual and interim financial statements. You will also learn what information should be presented in the entity-wide disclosures and when. Then, the methods for identifying the reporting units, qualitative assessment for goodwill impairment, and the quantitative one-step goodwill impairment test will be introduced. You will also learn the goodwill impairment test under IFRS and the rules for private companies to account for goodwill.

Good to know

Know what's good

, what to watch for

, and possible dealbreakers

Covers accounting for business combinations and financial statement preparation, essential for financial professionals

Led by Michael Kustanovich, CPA, who has expertise in the field

Explores consolidation adjustments and impairment testing, valuable for practitioners dealing with mergers and acquisitions

Requires familiarity with accounting principles, indicating suitability for intermediate learners seeking to enhance their skills

Reviews summary

Effective intermediate accounting

Learners say that this Advanced Financial Reporting course provides effective lectures that are easy to understand. According to reviews, Professor Kustanovich does a great job at explaining complicated concepts of consolidation and delivering the material at a comfortable pace. However, some students do note that handwritten examples and the instructor's accent could use some improvement.

The course is delivered at a speed that allows learners to follow along.

"The course is comprehensive and is delivered at the right pace."

"It was too good. Full of financial knowledge and full of extras. Worth full.."

"Very informative and structured course for the learners of group/corporate accounting."

Learners praise the clarity and organization of the course.

"Nicely structured and easy to understand course."

"The lessons were very well presented, the examples given to help understand the theories were adequate and very helpful."

"This is a rare intermediate accounting course I was looking for. Well supported by good course materials and lectures are easy to understand."

Professor Kustanovich's teaching skills are highly praised by students.

"The professor is a total success, well explained and subjects are easy to develop because of his way with students."

"Broke down the most complicated concepts of consolidation, so quickly and easily. Thank you so much Coursera, University of Illinois and CPA Michael Kustanovich sir !"

"The course provides the basic knowledge how to properly evaluate by an accounting standpoint a merger and acquisition of a company under the GAAP. The professor Kustanovich is straight and explain clearly the content of the lessons."

A few learners express that the instructor's accent sometimes makes it difficult to understand the material.

"I believe the content of this course was good. However, the instructor for the class had a very heavy accent and, unfortunately, I could understand very little of the lecture material."

"I don't quite understand reviews that say otherwise."

Some learners critique the use of handwritten examples in the course.

"It was a little too easy. Also, i have lived in foreign countries and spoken languages I am not native to, so I am sympathetic to accents, but the consistency of some of Professor Kostanovich's mistakes were quite distracting."

"Finally, I am not sure how others feel, but the fact that the instructor used hand-written examples instead of technology (Excel, maybe?) to show work is absolutely unbelievable."

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Advanced Financial Reporting: Accounting for Business Combinations and Preparation of Consolidated Financial Statements with these activities:

Find a Mentor in the Accounting Field

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Seek out a mentor who can provide guidance and support as you learn about accounting for business combinations.

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Identify potential mentors who have experience in accounting for business combinations.
Reach out to potential mentors and ask if they are willing to mentor you.

Review FASB ASC 805

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Review the relevant sections of FASB ASC 805 to reinforce your understanding of the accounting for business combinations.

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Read the sections of FASB ASC 805 that relate to business combinations.
Make notes on the key concepts and requirements.

Attend a Workshop on Business Combinations

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Attend a workshop to learn more about the accounting for business combinations, which will be covered in Module 2.

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Find a workshop on business combinations that is offered by a reputable organization.
Register for the workshop and attend all of the sessions.
Take notes on the key concepts and requirements.

Five other activities

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Practice Consolidated Balance Sheet by the Acquisition Method

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Practice the basic steps of preparing consolidated financial statements, which will be covered in Module 2.

Browse courses on Consolidated Financial Statements

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Read about the different types of business combinations.
Practice preparing the consolidated balance sheet as of the acquisition date.

Discuss Consolidation Adjustments

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Participate in a study group to discuss consolidation adjustments, which will be covered in Module 5.

Browse courses on Consolidated Financial Statements

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Meet with a group of classmates to discuss consolidation adjustments.
Share your understanding of the different types of consolidation adjustments.
Work together to solve problems related to consolidation adjustments.

Practice Goodwill Impairment Test

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Practice the steps involved in the goodwill impairment test, which will be covered in Module 8.

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Read about the different methods for calculating goodwill.
Practice calculating the goodwill impairment charge.

Follow a Tutorial on Goodwill Impairment Test

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Follow a tutorial to learn how to perform the goodwill impairment test, which will be covered in Module 8.

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Find a tutorial on the goodwill impairment test that is offered by a reputable source.
Follow the steps in the tutorial to learn how to perform the goodwill impairment test.
Practice performing the goodwill impairment test on your own.

Prepare a Consolidated Financial Statement Analysis

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Complete a project that will test your understanding of how to prepare and analyze consolidated financial statements.

Browse courses on Consolidated Financial Statements

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Choose a company that has recently acquired another company.
Gather the financial statements of the acquiring and acquired companies.
Prepare the consolidated financial statements for the combined company.
Analyze the consolidated financial statements to identify any trends or areas of concern.

Career center

Learners who complete Advanced Financial Reporting: Accounting for Business Combinations and Preparation of Consolidated Financial Statements will develop knowledge and skills that may be useful to these careers:

Financial Controller

Financial Controllers oversee the financial operations of a company, including financial reporting and accounting for business combinations. This course provides Financial Controllers with the knowledge and skills to prepare consolidated financial statements and ensure compliance with accounting standards. The course also covers the goodwill impairment test, which is crucial for Financial Controllers to assess the value of a company's intangible assets.

See salaries and explore the career path for Financial Controller

Auditor

Auditors ensure the accuracy and fairness of financial statements, which are essential to investors and other stakeholders. This course provides Auditors with a comprehensive understanding of the accounting principles related to business combinations and consolidation, as well as the ability to prepare consolidated financial statements. The course also covers the goodwill impairment test, which is crucial for Auditors to assess the value of a company's intangible assets.

See salaries and explore the career path for Auditor

Manager of Financial Reporting

Managers of Financial Reporting are responsible for the preparation and disclosure of a company's financial statements. This course provides Managers of Financial Reporting with the knowledge and skills to prepare consolidated financial statements and ensure compliance with accounting standards. The course also covers the goodwill impairment test, which is crucial for Managers of Financial Reporting to assess the value of a company's intangible assets.

See salaries and explore the career path for Manager of Financial Reporting

Vice President of Finance

Vice Presidents of Finance are responsible for the overall financial management of a company. This course provides Vice Presidents of Finance with a deep understanding of the accounting and financial reporting aspects of business combinations, which are essential for making informed financial decisions. The course also covers the goodwill impairment test, which is crucial for Vice Presidents of Finance to assess the value of a company's intangible assets.

See salaries and explore the career path for Vice President of Finance

Investment Banker

Investment Bankers facilitate the flow of capital between investors and businesses by advising on mergers, acquisitions, and other financial transactions. This course provides Investment Bankers with a solid foundation in the accounting and financial reporting aspects of business combinations, which are essential for evaluating the financial viability of potential deals. The course also covers the goodwill impairment test, which is crucial for Investment Bankers to assess the value of a company's intangible assets.

See salaries and explore the career path for Investment Banker

Chief Financial Officer (CFO)

Chief Financial Officers (CFOs) are responsible for the overall financial health of a company. This course provides CFOs with a deep understanding of the accounting and financial reporting aspects of business combinations, which are essential for making informed financial decisions. The course also covers the goodwill impairment test, which is crucial for CFOs to assess the value of a company's intangible assets.

See salaries and explore the career path for Chief Financial Officer (CFO)

Certified Public Accountant (CPA)

Certified Public Accountants (CPAs) provide a wide range of accounting and auditing services to businesses and individuals. This course provides CPAs with the knowledge and skills to audit and prepare consolidated financial statements, including accounting for business combinations. The course also covers the goodwill impairment test, which is crucial for CPAs to assess the value of a company's intangible assets.

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Corporate Accountant

Corporate Accountants are responsible for managing the financial operations of a company. This course provides Corporate Accountants with a comprehensive understanding of the accounting principles related to business combinations and consolidation, as well as the ability to prepare consolidated financial statements. The course also covers the goodwill impairment test, which is essential for Corporate Accountants to assess the value of a company's intangible assets.

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Director of Accounting

Directors of Accounting oversee the accounting and financial reporting operations of a company. This course provides Directors of Accounting with a deep understanding of the accounting and financial reporting aspects of business combinations, which are essential for making informed financial decisions. The course also covers the goodwill impairment test, which is crucial for Directors of Accounting to assess the value of a company's intangible assets.

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Financial Analyst

Financial Analysts provide valuable guidance to businesses by making recommendations and evaluating the feasibility of potential investments. This course helps build a foundation for a career as a Financial Analyst by providing an in-depth understanding of the financial reporting process, including the preparation of consolidated financial statements and accounting for business combinations. The course also covers the goodwill impairment test, which is an essential tool for Financial Analysts to assess the value of a company's intangible assets.

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Consultant

Consultants provide expert advice to businesses on various aspects of their operations, including financial management. This course equips Consultants with the knowledge and skills to advise clients on accounting for business combinations and the preparation of consolidated financial statements. The course also covers the goodwill impairment test, which is an important tool for Consultants to assess the value of a company's intangible assets.

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Forensic Accountant

Forensic Accountants investigate financial crimes and fraud. This course provides Forensic Accountants with the knowledge and skills to analyze financial statements and identify potential financial irregularities, including those related to business combinations and the goodwill impairment test.

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Financial Risk Manager

Financial Risk Managers identify and manage financial risks within a company. This course provides Financial Risk Managers with the knowledge and skills to assess the financial impact of business combinations and the goodwill impairment test on a company's financial performance.

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Tax Accountant

Tax Accountants specialize in taxation and accounting. This course provides Tax Accountants with the knowledge and skills to understand the tax implications of business combinations and the goodwill impairment test.

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Portfolio Manager

Portfolio Managers make investment decisions for individuals and institutions. This course provides Portfolio Managers with the knowledge and skills to analyze financial statements and make informed investment decisions, including assessing the impact of business combinations and the goodwill impairment test on a company's financial performance.

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