Course Detail(A198 : Accounting for Mergers and Acquisitions)

A198 : Accounting for Mergers and Acquisitions

14.00 CPE Hours (Category 1)
Classroom

Introduction
Accounting Standards dealing with acquisition and merger (M&A) activities are evolving overtime to keep pace with the constant changing business environments. Acquisition of a business can often involved myriad of transactions being exchanged between the acquirer and the vendor. These transactions can range from a simple cash payment to swapping of assets and liabilities, issue of complex financial instruments and deferred settlement subject to contingencies. Upon completion of a M&A transaction, the acquirer needs to account for additional line items such as goodwill, intangible assets, contingent liabilities and often including non-controlling interest in the consolidated financial statements and the investment interest in the separate financial statement.
 
Programme Objectives
This seminar takes a systematic approach to enhance a preparer’s skills in handling the accounting for M&A activities by:
1st        Handling the initial accounting for acquisition of a business:

  • To provide a step-by-step guide on applying the principle of business combination
  • Acquisition of an entity that does not constitute a business
 
2nd       Handling the subsequent maintenance accounting:
  • The consolidation of investment interest
  • Accounting for the complex issues of changes in investment interest
  • Maintenance and impairment of goodwill

Programme Outline

1ST INITIAL ACCOUNTING
 
Acquisition of a business
 

  • Scope and general issues
    • Determine a ‘business’
    • Identifying the acquirer
    • Identify common control
    • Treatment of business combination involving common control
    • The importance of identifying acquisition date
    • Dealing with changes provisional value in initial measurement period
 
  • Accounting for investment interests in the separate financial statement of an investor
    • Dealing with acquisition related costs
    • Accounting for consideration transferred
    • Treating contingent consideration
 
  • Valuation and accounting for identifiable assets and liabilities of acquiree:
    • Determining fair value of identifiable assets acquired and liabilities assumed
    • Reacquired rights
    • Accounting for contingent liabilities of acquiree:
    • Recognizing and measuring deferred tax at date of acquisition for:
      • Fair value changes to the carrying amount of acquiree’s assets and liabilities
      • Pre-acquisition unused tax losses carried forward of acquiree
 
  • Dealing with non-controlling interest
    • Valuing non-controlling interest
    • Goodwill attributable to non-controlling interest
    • Subsequent changes in interest in non-controlling interest
 
  • Business combination achieve in stages
    • Calculating goodwill at date of acquisition
    • Accounting for subsequent increase in equity interest
 
  • Accounting for goodwill arising from business combination (IAS36)
 
 
2nd SUBSEQUENT ACCOUNTING:
 
1. Investment in subsidiaries
  • Accounting for cost of investment in separate financial statements of an investor
  • Impairment of the cost of investment
 
2. Issues in consolidated financial statements
 
  • Dealing with changes in investment interest:
    • Acquisition in stages without obtaining control
    • Acquisition in stages resulted in obtaining control
    • Disposal in stages without losing control
    • Disposal in stages that resulted in losing control
    • Bonus and rights issue
    • Reverse acquisition
 
  • Exempt Entities Consideration
    • Definition and identification
    • Acquisition and disposal of investment interest by Exempt Entities
 
  • The interaction between business combination and consolidated financial statements
    • How to deal with acquisition of a controlling interest in an entity that does not constitute a business
    • How to deal with acquisition of a business without acquiring a controlling interest in an entity
 
Training Methodology
Lecture style, with practical illustrations, technical flow-charts, conceptual “mind maps” and interactive discussions.
 
Closing Date for Registration
1 week before programme or until full enrolment

Intended For

This programme is suitable for all Finance Professionals, Audit Professionals, Members of Audit Committee, Finance Directors and Regulators. Those who are keen on attending a practical course that examines the initial accounting for business combination and the subsequent accounting for maintenance of goodwill and changes in investment interest as well as the consolidation procedures are welcome to attend.

Competency Mapping

Category 1 = 14.00 Hours

Schedule & Fees

Date & Time

17 Aug 2020 (9:00 AM - 5:00 PM)
18 Aug 2020 (9:00 AM - 5:00 PM)

Fee (inclusive of GST)

For Members: $ 652.70
For Non-Members: $ 783.24

Programme Facilitator(s)

Danny Tan

Venue

60 Cecil Street
ISCA House
Singapore 049709

Date & Time

24 Oct 2019 (9:00 AM - 5:00 PM)
25 Oct 2019 (9:00 AM - 5:00 PM)

Registration is closed

Programme Facilitator(s)

Danny Tan

Date & Time

26 Aug 2019 (9:00 AM - 5:00 PM)
27 Aug 2019 (9:00 AM - 5:00 PM)

Registration is closed

Programme Facilitator(s)

Danny Tan

Date & Time

27 Aug 2018 (9:00 AM - 5:00 PM)
28 Aug 2018 (9:00 AM - 5:00 PM)

Registration is closed

Programme Facilitator(s)

Danny Tan

Testimonial

Funding

No funding Available!

Programme Facilitator(s)


Danny Tan

Danny has over 30 years of experience in public practice, commerce and industry. He was trained with a firm of Chartered Accountants in London where he worked for over 10 years in the audit and consultancy. He also held the positions of business development and business operation manager with two UK multinational companies based in London for 5 years. Danny specialises in International Financial Reporting Standards (IFRSs) and in the last 15 years he is a partner of a firm providing training and consulting in the areas of preparing and presenting financial statements in accordance with IFRSs.


Danny holds an Honours Degree in Economics (major in finance and investment) from Manchester Metropolitan University (UK), MBA from Heriot-Watt University (UK) and Master in Advance Business Practice from University of South Australia. He is a fellow member of Chartered Instituted of Management Accountants, a fellow member of Association of Chartered Certified Accountants, a member of Malaysian Institute of Accountants and an associate member of Chartered Tax Institute of Malaysia.
 

Introduction
Accounting Standards dealing with acquisition and merger (M&A) activities are evolving overtime to keep pace with the constant changing business environments. Acquisition of a business can often involved myriad of transactions being exchanged between the acquirer and the vendor. These transactions can range from a simple cash payment to swapping of assets and liabilities, issue of complex financial instruments and deferred settlement subject to contingencies. Upon completion of a M&A transaction, the acquirer needs to account for additional line items such as goodwill, intangible assets, contingent liabilities and often including non-controlling interest in the consolidated financial statements and the investment interest in the separate financial statement.
 
Programme Objectives
This seminar takes a systematic approach to enhance a preparer’s skills in handling the accounting for M&A activities by:
1st        Handling the initial accounting for acquisition of a business:

  • To provide a step-by-step guide on applying the principle of business combination
  • Acquisition of an entity that does not constitute a business
 
2nd       Handling the subsequent maintenance accounting:
  • The consolidation of investment interest
  • Accounting for the complex issues of changes in investment interest
  • Maintenance and impairment of goodwill

Programme Outline

1ST INITIAL ACCOUNTING
 
Acquisition of a business
 

  • Scope and general issues
    • Determine a ‘business’
    • Identifying the acquirer
    • Identify common control
    • Treatment of business combination involving common control
    • The importance of identifying acquisition date
    • Dealing with changes provisional value in initial measurement period
 
  • Accounting for investment interests in the separate financial statement of an investor
    • Dealing with acquisition related costs
    • Accounting for consideration transferred
    • Treating contingent consideration
 
  • Valuation and accounting for identifiable assets and liabilities of acquiree:
    • Determining fair value of identifiable assets acquired and liabilities assumed
    • Reacquired rights
    • Accounting for contingent liabilities of acquiree:
    • Recognizing and measuring deferred tax at date of acquisition for:
      • Fair value changes to the carrying amount of acquiree’s assets and liabilities
      • Pre-acquisition unused tax losses carried forward of acquiree
 
  • Dealing with non-controlling interest
    • Valuing non-controlling interest
    • Goodwill attributable to non-controlling interest
    • Subsequent changes in interest in non-controlling interest
 
  • Business combination achieve in stages
    • Calculating goodwill at date of acquisition
    • Accounting for subsequent increase in equity interest
 
  • Accounting for goodwill arising from business combination (IAS36)
 
 
2nd SUBSEQUENT ACCOUNTING:
 
1. Investment in subsidiaries
  • Accounting for cost of investment in separate financial statements of an investor
  • Impairment of the cost of investment
 
2. Issues in consolidated financial statements
 
  • Dealing with changes in investment interest:
    • Acquisition in stages without obtaining control
    • Acquisition in stages resulted in obtaining control
    • Disposal in stages without losing control
    • Disposal in stages that resulted in losing control
    • Bonus and rights issue
    • Reverse acquisition
 
  • Exempt Entities Consideration
    • Definition and identification
    • Acquisition and disposal of investment interest by Exempt Entities
 
  • The interaction between business combination and consolidated financial statements
    • How to deal with acquisition of a controlling interest in an entity that does not constitute a business
    • How to deal with acquisition of a business without acquiring a controlling interest in an entity
 
Training Methodology
Lecture style, with practical illustrations, technical flow-charts, conceptual “mind maps” and interactive discussions.
 
Closing Date for Registration
1 week before programme or until full enrolment

Intended For

This programme is suitable for all Finance Professionals, Audit Professionals, Members of Audit Committee, Finance Directors and Regulators. Those who are keen on attending a practical course that examines the initial accounting for business combination and the subsequent accounting for maintenance of goodwill and changes in investment interest as well as the consolidation procedures are welcome to attend.

Competency Mapping

Category 1 = 14.00 Hours

Programme Facilitator(s)

Danny Tan

Danny has over 30 years of experience in public practice, commerce and industry. He was trained with a firm of Chartered Accountants in London where he worked for over 10 years in the audit and consultancy. He also held the positions of business development and business operation manager with two UK multinational companies based in London for 5 years. Danny specialises in International Financial Reporting Standards (IFRSs) and in the last 15 years he is a partner of a firm providing training and consulting in the areas of preparing and presenting financial statements in accordance with IFRSs.


Danny holds an Honours Degree in Economics (major in finance and investment) from Manchester Metropolitan University (UK), MBA from Heriot-Watt University (UK) and Master in Advance Business Practice from University of South Australia. He is a fellow member of Chartered Instituted of Management Accountants, a fellow member of Association of Chartered Certified Accountants, a member of Malaysian Institute of Accountants and an associate member of Chartered Tax Institute of Malaysia.
 

Upcoming Schedule

Date & Time

17 Aug 2020 (9:00 AM - 5:00 PM)
18 Aug 2020 (9:00 AM - 5:00 PM)

Fee (inclusive of GST)

For Members: $ 652.70
For Non-Members: $ 783.24

Programme Facilitator(s)

Danny Tan

Venue

60 Cecil Street
ISCA House
Singapore 049709