Merger & Acquisition (M&A): Accounting & Tax Impact

Learning Outcome

Students will be able to discuss and understand the accounting and taxation issues that underlies merger, acquisition, and investment activities among firms that result in complex financial structures.

Topics

1. Key topics include the purchase accounting method for acquisitions
2. The equity method for investments
3. The preparation and interpretation of consolidated financial statements
4. Tax implications of mergers and acquisitions
5. Earnings-per-share considerations
6. The accounting implications of intercompany transactions and non-domestic investments
7. The effect of M&A on corporate & shareholders taxation
8. Tax benefits from corporate combinations
9. Tax issues to consider before M&A including: tax attribute carryover
10. Financing structure
11. Legal status of target
12. Ordinary vs capital gain and accrued liabilities/contingent expenses