ADVANCED ACCOUNTING II (2/2 Credits)

Learning outcomes:

On successful completion of this Course, students will be able to: Explain the concept of business combination, concept of control, and concept of group reporting; Apply the consolidated financial statement, the elimination principles of intragroup transactions, and profit for controlling interest as well as non controlling interest; Apply consolidation principles of changes in ownership interest, indirect and mutual ownerships subsidiaries for consolidated financial statements; Apply the concept of intercompany bond holdings and the accounting for intercompany bond; Explain the concept of liquidation and reorganisation.

Topics:

1. Introduction to Business Combinations and the Conceptual Framework;
2. Consolidated Financial Statement – Date of Acquisition;
3. Consolidated Financial Statement After Acquisition;
4. Allocation and Depreciation of Differences Between Implied and Book Values;
5. Elimination of Unrealized Profit on Intercompany Sales of Inventory;
6. Elimination of Unrealized Gains and Losses on Intercompany Sales of Plant and Property;
7. Changes in Ownership Interest;
8. Intercompany Bond Holdings;
9. Indirect and Mutual Holdings;
10. Liquidation and Reorganisation