ADVANCED ACCOUNTING (2 SCU)

Learning Outcomes:

On successful completion of this course, students will be able to: LO1 – explain the concept of business combination and concept of group reporting; LO2 – prepare the Consolidated Financial Statement on the Date and After the Acquisition: Inter Company Sales of Inventory, Property, Equipment using Cost and Complete Equity Methods; LO3 – prepare Trustee Reporting during Liquidation or Reorganization; LO4 – apply The Accounting for Foreign Currency Transactions, Hedging, and Financial Statements of Foreign Affiliates.

Topics:

1. Introduction to business combinations, Conceptual framework and accounting for business;
2. Consolidated financial statement – date of acquisition;
3. Consolidated financial statements 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 or losses on intercompany sales of property and equipment;
7. Insolvency—liquidation and reorganization;
8. Accounting for foreign currency transactions and hedging foreign exchange risk;
9. Translation of financial statements of foreign affiliates.