CE/CPE Course Information

Accounting for Business Combinations and Consolidated Financial Reporting

CPE Credits: 6
Subject Area: Accounting and Auditing
Field of Study: Accounting
Program Level: Overview
Lesson Version: 17-1
Publication/Revision Date: January 3, 2017
Prerequisites/Advanced Preparation: None
Written By: Michael Kustanovich, CPA

After completing this course, you will be able to
  • Distinguish situations in which consolidated reporting is necessary from those in which it is not
  • Apply the major principles of the acquisition method of accounting for a business combination, including recognition of goodwill and gain from bargain purchase
  • Account for contingent consideration transferred in a business combination
  • Apply the proper accounting treatment for costs associated with a business combination
  • Prepare consolidated financial statements on, and subsequent to, the acquisition date
  • Account for intraentity transactions and perform the calculations necessary to record the eliminating journal entries
  • Account for changes in a parent’s ownership interest, including deconsolidation of a subsidiary and spin-off transactions
  • Identify the main concepts of the variable interest model
  • Distinguish between the accounting for taxable and nontaxable business combinations.

    This course was reviewed on January 18, 2019, and no updates or revisions were deemed necessary.

Course Topics
  1. Introduction and Definitions
  2. Accounting for Business Combinations -- Acquisition Method
  3. Preparation of Acquisition-Date Consolidated Balance Sheet
  4. Consolidated Financial Reporting Subsequent to Acquisition Date
  5. Intraentity Transactions -- Eliminating Journal Entries
  6. Other Issues -- Changes in Parent’s Ownership Interest and Deconsolidation
  7. Other Issues -- Business Combination Achieved in Stages
  8. Other Issues -- Variable Interest Entities (VIEs)
  9. Other Issues -- Taxable and Nontaxable Business Combinations

This self-study course consists of an Audiovisual presentation or a 30-question True/False Introductory quiz, a Knowledge Transfer Outline with multiple-choice questions for study and review, and a Qualified Assessment of 30 questions.

This course is designed for your convenience. You may log out at any time during the course; your current position and all work will be saved. The next time you log in, you can resume right where you logged off.

State Board and other CPE agency registrations can be viewed on our sponsor approvals page.

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