Accounting for Mergers and Acquisitions

2 credits · Owen Graduate School of Management

Financial reporting information is organized and presented in consolidated financial statements. This course focuses on general purpose external financial reports, primarily the balance sheet, income statement, and statement of cash flows. We develop a thorough understanding of the consolidation process, whereby the financial statements of the parent entity are combined with acquired subsidiaries over which the parent has control. This process ensures individuals have a sound understanding of the acquisition method, in particular the determination of goodwill, goodwill impairment, and bargain purchase acquisitions. We study foreign currency transactions and the accounting-based hedging of these activities as well as the translation of financial statements for subsidiary operations prepared in a foreign currency. We conclude with a focus on the process underlying segmental financial reporting. [2] Pre- or co-requisite: MGT 6410 and MGT 6411 (can be taken concurrently).