Certificate of Achievement

Jonathan Hardy

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

94%
overall score

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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Free online course:

Mergers and Acquisitions: Accounting Principles

New York Institute of Finance