Certificate of Achievement
has completed the following course:
Mergers and Acquisitions: Accounting Principles
New York Institute of Finance
This online course explained accounting and US federal income tax principles to project earnings and cash flows, specifically of the post-combination entity. The course gave extensive explanation of the cost method, and equity method of consolidation, as well as an in-depth exploration of purchase accounting.
2 weeks, 4 hours per week
Jack Farmer
Curriculum Director
New York Institute of Finance
Transcript
Learning outcomes
- Investigate how the Aggregate Deemed Sales Price and Adjusted Grossed-Up Basis are determined
- Discuss the conditions that make a 338(h)(10) transaction economically feasible
- Identify the mechanism of an IRC 338(h)(10) transaction
- Interpret the conditions that make a 338(g) transaction economically feasible
- Identify the mechanism of an IRC 338(g) transaction
- Calculate the accretion and dilution of future earnings resulting from business combinations
- Explain how to estimate the impact of target's unrecognised intangible assets on goodwill and the combined company's future earnings
- Calculate the acquisition purchase price and transaction goodwill
- Explore how net operating loss limitations may impact the combined company's future cash flows
- Identify a targets' net identifiable assets by adjusting for existing goodwill, long-term asset write-ups and write-downs, LIFO inventories, deferred tax items, and fees
- Describe the fundamental concepts for accounting for business combinations using the purchase model
- Summarise the impact of phantom goodwill or phantom depreciation
- Investigate the tax considerations for equity method investments
- Describe the equity method of consolidation
Syllabus
Week 1 - Consolidation
Equity methods of consideration and the cost method, its sub-categories, and consolidation
Week 2 - Purchase Accounting and Special Topics
Explore purchase accounting in detail and other areas like Internal Revenue Code Section 338, tax deductible goodwill and intangibles
Issued on 29th September 2022
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