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Oktay Urcan

This course aims at assisting you in interpreting financial accounting information related to advanced issues in inter-corporate investments. The course will cover four main topics over four modules: (i) accounting for spinoffs and equity carveouts, (ii) accounting for leveraged buyouts and recapitalizations, (iii) tax considerations in inter-corporate investments, and (iv) financial statement analysis in the presence of inter-corporate investments.

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This course aims at assisting you in interpreting financial accounting information related to advanced issues in inter-corporate investments. The course will cover four main topics over four modules: (i) accounting for spinoffs and equity carveouts, (ii) accounting for leveraged buyouts and recapitalizations, (iii) tax considerations in inter-corporate investments, and (iv) financial statement analysis in the presence of inter-corporate investments.

The course will be useful for students to understand complex organizational structures through the lens of financial accounting information and will benefit investors, analysts, bankers, consultants, managers, and any deal-makers.

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What's inside

Syllabus

Course Orientation
Special Types of Divestitures
Acquirer firms may divest their investments in other firms in some exotic ways. In this module, you will explore two notable special divestitures: spinoffs and equity carveouts.
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Corporate Reorganizations
Acquirer firms may obtain the control of target firms in some exotic ways. In this module, you will explore two notable corporate reorganizations: leveraged buyouts (LBOs) and recapitalizations (RECAPs).
Tax Considerations in Inter-Corporate Investments
Inter-corporate investments can result in special tax issues for target shareholders and target firms. In this module, you will explore taxable versus tax-free transactions, step-ups versus carryovers, deferred taxes, and miscellaneous acquisition-related tax issues including loss trafficking and goodwill taxation.
Financial Statement Analysis (FSA) with Inter-Corporate Investments
Financial statement analysis (FSA) builds models to evaluate past position and predict future performance of a firm using financial statements. In this module, you will explore FSA in the presence of inter-corporate investments and calculation of organic versus acquired growth.

Good to know

Know what's good
, what to watch for
, and possible dealbreakers
Teaches about spin-offs and equity carve-outs, which are standard in corporate restructuring
Introduces learners to leveraged buyouts (LBOs) and recapitalizations (RECAPs), which are key concepts in corporate finance
Examines the tax considerations in inter-corporate investments, which is crucial knowledge for financial professionals
Develops skills in financial statement analysis (FSA) with inter-corporate investments, which is essential for evaluating companies
Provides a solid understanding of organic versus acquired growth, which is important for understanding a company's true performance

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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 Accounting for Mergers and Acquisitions: Advanced Topics with these activities:
Seek Mentorship from Experienced Financial Analysts
Establish connections with experienced professionals in the field to gain valuable insights and guidance on inter-corporate investments.
Browse courses on Mentorship
Show steps
  • Identify potential mentors through professional networking events, online platforms, or personal connections.
  • Reach out to mentors and express your interest in learning from their experience.
  • Set up regular meetings or communication channels to engage in discussions.
  • Prepare questions and topics to discuss during mentorship sessions.
  • Follow up with mentors and express appreciation for their guidance.
Review Concepts of Basic Accounting
This course assumes a strong foundation on basic accounting. A refresher will ensure a smooth transition into more complex topics.
Browse courses on Accounting Fundamentals
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  • Review key accounting principles and concepts.
  • Go through examples of financial statements.
  • Practice journalizing transactions and posting to ledgers.
Review Financial Accounting by Horngren, Sundem, & Elliott
Review core concepts and definitions of advanced financial accounting principles in an accounting textbook.
Show steps
  • Read the assigned chapters related to the course topics.
  • Take notes on key concepts and definitions.
  • Complete any end-of-chapter exercises or questions to test your understanding.
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Review Final Report Writing Guidelines from the AICPA
Review the Final Report Writing Guidelines to ensure that you are aligned with the AICPA's expectations for writing final audit reports.
Show steps
  • Download the Final Report Writing Guidelines from the AICPA website.
  • Review the different sections of the guidelines.
  • Make notes on any key points or changes from previous guidelines.
Participate in Discussion Groups on Tax Considerations
Engage in discussions with peers to clarify and expand understanding of complex tax issues in inter-corporate investments.
Show steps
  • Join online forums or discussion groups relevant to tax considerations.
  • Actively participate in discussions and pose questions.
  • Share knowledge and insights with other participants.
  • Learn from the perspectives and experiences of others.
Solve Practice Problems on Spinoffs and Equity Carveouts
Reinforce your understanding of spinoffs and equity carveouts through hands-on problem-solving.
Browse courses on Spinoffs
Show steps
  • Identify problems related to spinoffs and equity carveouts from textbooks or online resources.
  • Break down the problems into manageable steps.
  • Apply the concepts learned in the course to solve the problems.
Tutorial on the FASB Accounting Standards Codification (ASC) 805
Understanding ASC 805 is crucial for accounting for business combinations and is covered in this course.
Show steps
  • Locate the relevant sections of ASC 805.
  • Review the main requirements and guidance.
  • Complete the practice exercises provided in the tutorial.
Create a Mind Map of Inter-Corporate Investment Concepts
Visualize and organize key concepts and relationships related to inter-corporate investments to enhance understanding.
Show steps
  • Identify the main topics and subtopics related to inter-corporate investments.
  • Create a visual representation using a mind mapping tool or software.
  • Connect the concepts and subtopics with branches and sub-branches.
  • Add examples, definitions, and key points to each concept.
Follow Tax-Related Guidelines for Inter-Corporate Investments
Gain practical knowledge of tax implications in inter-corporate investments by exploring relevant tutorials.
Browse courses on Tax Considerations
Show steps
  • Search for online tutorials and resources on tax considerations for inter-corporate investments.
  • Review the tutorials, taking notes on key concepts and guidelines.
  • Apply the acquired knowledge to analyze hypothetical inter-corporate investment scenarios.
Engage in Group Discussions on Financial Statement Analysis
Deepen your understanding of financial statement analysis in the context of inter-corporate investments through group discussions.
Show steps
  • Join or form a study group with classmates.
  • Select a financial statement for a company with inter-corporate investments.
  • Analyze the statement using the concepts learned in the course.
  • Present your findings to the group and engage in discussions.
Analyze Financial Statements of a Company with Inter-Corporate Investments
Apply financial statement analysis techniques to interpret and evaluate the impact of inter-corporate investments on a company's financial performance.
Show steps
  • Select a publicly traded company with significant inter-corporate investments.
  • Gather the company's financial statements for multiple periods.
  • Analyze the financial statements using appropriate ratios and metrics.
  • Identify trends, patterns, and insights related to the company's inter-corporate investments.
  • Write a report summarizing your findings and insights.
Develop a Presentation on Leveraged Buyouts and Recapitalizations
Enhance your grasp of leveraged buyouts and recapitalizations by creating a comprehensive presentation.
Browse courses on Leveraged Buyouts
Show steps
  • Research and gather information on leveraged buyouts and recapitalizations.
  • Develop an outline for your presentation, including an introduction, main points, and conclusion.
  • Create visually engaging slides to support your presentation.
  • Practice delivering your presentation to ensure clarity and effectiveness.
Develop a Decision-Making Framework for Inter-Corporate Investments
Solidify your understanding of inter-corporate investments by creating a decision-making framework that incorporates financial accounting information.
Show steps
  • Research existing decision-making frameworks for inter-corporate investments.
  • Identify key financial accounting factors to consider in the decision-making process.
  • Develop a step-by-step framework that integrates these factors.
  • Test the framework using case studies or simulations.
Develop a Financial Model for Inter-Corporate Investment Analysis
Apply financial modeling techniques to analyze and evaluate inter-corporate investment opportunities.
Browse courses on Financial Modeling
Show steps
  • Identify the relevant financial data and assumptions.
  • Choose appropriate financial modeling software or tools.
  • Build the financial model using formulas and calculations.
  • Test the model and validate its accuracy.
  • Use the model to analyze different investment scenarios and make recommendations.
Analyze a recent leveraged buyout transaction.
LBOs are complex transactions that require a deep understanding of financial accounting. This project provides an opportunity to apply the concepts learned in the course.
Browse courses on Leveraged Buyouts
Show steps
  • Identify a recent LBO transaction.
  • Gather the relevant financial data.
  • Analyze the accounting treatment of the transaction.
  • Write a report summarizing your findings.

Career center

Learners who complete Accounting for Mergers and Acquisitions: Advanced Topics will develop knowledge and skills that may be useful to these careers:
Mergers and Acquisitions Analyst
Mergers and acquisitions (M&A) analysts help companies evaluate and execute mergers and acquisitions. This course can provide you with a strong foundation in the accounting aspects of M&A, which can help you succeed in this role. The course covers topics such as accounting for goodwill, purchase price allocation, and post-acquisition integration. This knowledge can help you to better understand the financial implications of M&A transactions and to make more informed recommendations to clients.
Private Equity Associate
Private equity associates work for private equity firms that invest in companies. They are responsible for evaluating potential investments, structuring deals, and monitoring portfolio companies. This course can provide you with a solid foundation in the accounting aspects of private equity, which can help you succeed in this role. The course covers topics such as accounting for private equity funds, valuation methods, and exit strategies. This knowledge can help you to better understand the financial implications of private equity investments and to make more informed investment decisions.
Venture Capitalist
Venture capitalists provide funding to early-stage companies. They are responsible for evaluating potential investments, structuring deals, and monitoring portfolio companies. This course can provide you with a solid foundation in the accounting aspects of venture capital, which can help you succeed in this role. The course covers topics such as accounting for venture capital funds, valuation methods, and exit strategies. This knowledge can help you to better understand the financial implications of venture capital investments and to make more informed investment decisions.
Corporate Accountant
Corporate Accountants are responsible for the accounting and financial reporting of a company. They are responsible for preparing financial statements, managing cash flow, and overseeing the accounting staff. This course can provide you with a strong foundation in the accounting aspects of mergers and acquisitions, which can help you succeed in this role. The course covers topics such as accounting for goodwill, purchase price allocation, and post-acquisition integration. This knowledge can help you to better understand the financial implications of M&A transactions and to make more informed decisions.
Investment Banker
Investment bankers provide financial advice to corporations and governments. They help companies raise capital through the issuance of stocks and bonds, and they advise on mergers and acquisitions. This course can be very helpful in this role, as it provides a deep understanding of accounting for mergers and acquisitions. This knowledge can help you better understand the financial implications of these transactions and provide more informed advice to clients.
Tax Accountant
Tax accountants are responsible for preparing tax returns and providing tax advice to individuals and businesses. This course can provide you with a strong foundation in the tax implications of mergers and acquisitions, which can help you succeed in this role. The course covers topics such as taxable versus tax-free transactions, step-ups versus carryovers, and deferred taxes. This knowledge can help you to better understand the tax implications of these transactions and to provide more informed advice to clients.
Controller
Controllers are responsible for the day-to-day accounting operations of a company. They are responsible for preparing financial statements, managing cash flow, and overseeing the accounting staff. This course can provide you with a strong foundation in the accounting aspects of mergers and acquisitions, which can help you succeed in this role. The course covers topics such as accounting for goodwill, purchase price allocation, and post-acquisition integration. This knowledge can help you to better understand the financial implications of M&A transactions and to make more informed decisions.
Chief Financial Officer
The Chief Financial Officer (CFO) is responsible for the financial health of a company. They are responsible for preparing financial statements, managing cash flow, and making investment decisions. This course can provide you with a strong foundation in the accounting aspects of mergers and acquisitions, which can help you succeed in this role. The course covers topics such as accounting for goodwill, purchase price allocation, and post-acquisition integration. This knowledge can help you to better understand the financial implications of M&A transactions and to make more informed decisions.
Public Accountant
Public accountants provide accounting services to individuals and businesses. They prepare tax returns, audit financial statements, and provide consulting services. This course can provide you with a strong foundation in the accounting aspects of mergers and acquisitions, which can help you succeed in this role. The course covers topics such as accounting for goodwill, purchase price allocation, and post-acquisition integration. This knowledge can help you to better understand the financial implications of M&A transactions and to provide more informed advice to clients.
Internal Auditor
Internal auditors evaluate the internal controls of a company and make recommendations for improvements. They use their accounting knowledge to assess the risk of fraud and other financial irregularities. This course can provide you with a strong foundation in the accounting aspects of mergers and acquisitions, which can help you succeed in this role. The course covers topics such as accounting for goodwill, purchase price allocation, and post-acquisition integration. This knowledge can help you to better understand the financial implications of M&A transactions and to identify potential risks.
Staff Accountant
Staff accountants are responsible for the day-to-day accounting operations of a company. They are responsible for recording financial transactions, preparing financial statements, and assisting with audits. This course can provide you with a strong foundation in the accounting aspects of mergers and acquisitions, which can help you succeed in this role. The course covers topics such as accounting for goodwill, purchase price allocation, and post-acquisition integration. This knowledge can help you to better understand the financial implications of M&A transactions and to make more informed decisions.
Forensic Accountant
Forensic accountants investigate financial fraud and other financial crimes. They use their accounting knowledge to analyze financial data and identify irregularities. This course can provide you with a strong foundation in the accounting aspects of mergers and acquisitions, which can help you succeed in this role. The course covers topics such as accounting for goodwill, purchase price allocation, and post-acquisition integration. This knowledge can help you to better understand the financial implications of M&A transactions and to identify potential fraud.
Financial Analyst
Financial analysts help businesses make informed financial decisions by evaluating investments, analyzing financial data, and providing recommendations. This course is highly relevant to this role, as it provides a deep understanding of accounting for mergers and acquisitions. This knowledge can help you better understand the financial implications of these transactions and make more informed recommendations to businesses.
Auditor
An auditor plays an essential role in the financial sector. In this career, you will gain a deep understanding of accounting principles and auditing procedures. The knowledge and skills you acquire in this course can help you excel in this field by providing you with a solid foundation in accounting for mergers and acquisitions. This course, in particular, covers advanced topics in accounting, which can provide you with a competitive edge in the job market.
Management Consultant
Management consultants help businesses improve their performance by providing advice on strategy, operations, and technology. This course can be helpful in this role, as it provides a deep understanding of accounting for mergers and acquisitions. This knowledge can help you better understand the financial implications of these transactions and provide more informed advice to clients.

Reading list

We've selected 11 books that we think will supplement your learning. Use these to develop background knowledge, enrich your coursework, and gain a deeper understanding of the topics covered in Accounting for Mergers and Acquisitions: Advanced Topics.
Provides comprehensive coverage of the accounting and financial reporting issues related to mergers and acquisitions, as well as other restructuring activities. It valuable resource for students, practitioners, and researchers.
Offers a comprehensive guide to financial statement analysis, providing techniques and insights for evaluating the financial health and performance of companies including mergers and acquisitions
Provides a comprehensive overview of mergers and acquisitions, including the different types of transactions, the valuation techniques, and the post-merger integration process. It valuable resource for those seeking a deeper understanding of the subject matter.
This reference guide is useful as a supplement to the course. It can serve as a guide to understanding the complexities of IFRS 10 and IFRS 11. It provides insights into the practical application of these standards and offers guidance on how to interpret and apply them.
Provides a practical guide to the art of mergers and acquisitions, offering insights and advice from experienced practitioners. It valuable resource for those seeking to gain a deeper understanding of the M&A process and how to successfully navigate its complexities.
This reference guide provides a comprehensive overview of mergers and acquisitions from a global perspective, covering the legal and regulatory frameworks in different jurisdictions. It serves as an excellent resource for those seeking to understand the complexities of cross-border M&A transactions.
This textbook provides a comprehensive overview of corporate finance, including the different types of financial instruments, the capital budgeting process, and the cost of capital. It valuable resource for those seeking to gain a deeper understanding of the subject matter.
Provides a comprehensive overview of international financial reporting and analysis, including the different accounting standards and regulations around the world. It valuable resource for those seeking to understand the complexities of international financial reporting and how it may impact inter-corporate investments.
Provides a comprehensive overview of the mergers and acquisitions process, including how to plan and execute successful transactions. It valuable resource for business executives, investors, and other professionals.
Provides a fictionalized account of the mergers and acquisitions process, including the behind-the-scenes negotiations and the impact on the companies involved. It valuable resource for business executives, investors, and other professionals.

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