Course description
IFRS Accounting for Business Combinations
This IFRS course is available as a face to face event or as a virtual, online training.
Accounting for business combinations often presents considerable challenges for IFRS preparers. This 16 hour program provides a comprehensive understanding of, and hands-on practice in, applying the IFRS requirements on business combinations, consolidated financial statements and interests in associates, joint ventures and joint operations.
Our specialist instructors will explain and review the relevant parts of the following Standards:
- IFRS 3 Business Combinations
- IFRS 10 Consolidated Financial Statements
- IFRS 11 Joint Arrangements
- IFRS 12 Disclosure of Interests in Other Entities
- IAS 28 Investments in Associates and Joint Ventures
Using illustrative examples and real-world financial statements, the theory and practical application of the acquisition method of accounting for business combinations is demonstrated in an interactive group environment. The program also gives delegates a sound understanding of the requirements and methodology for accounting for acquiring and losing control of interests in joint arrangements and associates.
The course answers questions such as:
- What constitutes a ‘business’ and a ‘business combination’?
- What is included and excluded when calculating the consideration transferred in a business combination?
- How are contingent payments, subsequent fair value adjustments, contingent liabilities and intangible assets treated in a business combination?
- How are goodwill and non-controlling interests measured?
- How does IFRS 10's definition of control affect the scope of consolidated financial statements?
- How is the equity method of accounting applied to associates and joint ventures under IAS 28?
- How does IFRS 11 impact the treatment of joint arrangements?
Upcoming start dates
Suitability - Who should attend?
Individuals with interests in, or responsibilities for, preparing IFRS consolidated financial statements following business combinations and/or acquisitions of interests in associates or joint arrangements:
- Accountants with group reporting responsibilities
- Professionals involved in M&A transactions
- Internal auditors
- Analysts and advisors
- Systems professionals
Outcome / Qualification etc.
By the end of this course, participants will be able to:
- Differentiate between the different levels of investment and identify the appropriate accounting treatment
- Perform a purchase price allocation exercise and calculate goodwill by applying the rules in IFRS 3 Business Combinations
- Evaluate the impact of contingent consideration and implement the special recognition and measurement rules for contingent liabilities
- Perform equity accounting for an associate or joint venture by applying IAS 28
- Identify the two forms of joint arrangement and apply the appropriate accounting methods
CPE credits are available for all courses.
Training Course Content
This course is designed to cover the following key topics:
- Acquisition method of accounting – IFRS 3
- Definitions: business and business combination
- Scope exemptions
- Identifying the acquirer
- Determining the date of acquisition
- Recognising and measuring identifiable assets acquired, liabilities assumed, and non-controlling interests
- Recognition principle
- Measurement principle
- Recognising and measuring goodwill or a gain from a bargain purchase
- Consideration transferred
- Accounting for goodwill
- Business combinations achieved in stages
- Business combinations achieved without the transfer of consideration
- Provisional fair values and measurement period adjustments
- Subsequent measurement and accounting
- Reacquired rights
- Contingent liabilities
- Indemnification assets
- Contingent consideration
- Disclosures
- Consolidated financial statements – IFRS 10
- Determining control
- Accounting for changes in ownership interests
- Joint arrangements – IFRS 11
- Joint control
- Accounting for joint operations
- Accounting for joint ventures
- Investments in associates and joint ventures – IAS 28
- Acquisition and loss of significant influence
- Applying the equity method
- Impairment
- Interests in other entities – IFRS 12
- Disclosure
- Unconsolidated structured entities
Why choose IASeminars
We've been training for 20 years.
50% of our business comes from returning clients.
We offer instructor-led training in international locations, over Zoom or in house.
Expenses
The cost of this training course is £2,050 + VAT for face to face events and £1,850 + VAT for virtual events.
In House Training
In addition to the scheduled dates and locations, IASeminars can also run this course as in house training, to meet the specific requirements of your team. Contact them here to request a customised training solution for your team.