Accounting for Mergers and Acquisitions: Foundations

Accounting for Mergers and Acquisitions: Foundations

Mergers, acquisitions, and other complex transactions (e.g., spin-offs, carve-outs, leveraged buyouts, and recapitalizations) drastically alter firms’ financial statements. In this module, you will explore main types of equity investments and learn accounting for passive and significant type of investments. What’s included 5 videos 2 readings 6 quizzes

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Accounting for Mergers and Acquisitions: Foundations

Mergers and acquisitions (M&A) have become increasingly common in today’s business world as organizations seek to expand their market presence, gain competitive advantages, or achieve economies of scale. The accounting treatment of such transactions is crucial for ensuring transparency and accurate financial reporting. This article provides an overview of the foundational concepts and principles that govern accounting for mergers and acquisitions.

One of the main accounting standards that governs M&A transactions is Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 805, Business Combinations. According to ASC 805, a business combination is defined as a transaction in which an acquirer gains control over one or more businesses. This control can be achieved through the acquisition

Mergers, acquisitions, and other complex transactions (e.g., spin-offs, carve-outs, leveraged buyouts, and recapitalizations) drastically alter firms’ financial statements. In this module, you will explore main types of equity investments and learn accounting for passive and significant type of investments.

What’s included

5 videos2 readings6 quizzes

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