Accounting for Mergers and Acquisitions: Foundations

Accounting for Mergers and Acquisitions: Foundations

This course is part of Mergers and Acquisitions Specialization

Instructor: Oktay Urcan

8,188 already enrolled

4 modules

Gain insight into a topic and learn the fundamentals.

50 reviews

Intermediate level

Some related experience required

9 hours to complete

Flexible schedule

Learn at your own pace

4 modules

Gain insight into a topic and learn the fundamentals.

50 reviews

Intermediate level

Some related experience required

9 hours to complete

Flexible schedule

Learn at your own pace

What you'll learn

Account for and interpret economic events and transactions related to inter-corporate investments.
Account for and interpret economic events and transactions related to consolidations.
Account for and interpret economic events and transactions related to special considerations such as bargain purchase and earnouts.
Account for and interpret economic events and transactions related to special types of inter-corporate investments such as reverse acquisitions.

Skills you'll gain

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Assessments

22 assignments

Taught in English

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This course is part of the Mergers and Acquisitions Specialization

When you enroll in this course, you'll also be enrolled in this Specialization.

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There are 4 modules in this course

This course aims at assisting you in interpreting financial accounting information related to inter-corporate investments. The course will cover three main topics over four modules: (i) accounting for passive, significant influence, and control type of inter-corporate investments, (ii) special issues and considerations in inter-corporate investments, and (iii) special types of inter-corporate investments.

In this module, you will become familiar with the course, your classmates, and our learning environment. The orientation will also help you obtain the technical skills required for the course. We will then cover how 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

6 videos7 readings6 assignments1 plugin

6 videos Total 37 minutes

Meet Professor Urcan 1 minute
Introduction to Inter-Corporate Investments 3 minutes
Passive Investments 6 minutes
Significant Influence 7 minutes
Issues in Equity Method 16 minutes
Intercompany Transactions 4 minutes

7 readings Total 70 minutes

Syllabus 10 minutes
Online Education at Gies College of Business 10 minutes
Updating Your Profile 10 minutes
About the Discussion Forums 10 minutes
Getting to Know Your Classmates 10 minutes
Module 1 Overview 10 minutes
Module 1 Lecture Transcripts 10 minutes

6 assignments Total 80 minutes

Overview Practice Quiz 10 minutes
Passive Investment Practice Quiz 10 minutes
Significant Influence-Equity Method Practice Quiz 10 minutes
Issues in Equity Method Practice Quiz 10 minutes
Intercompany Transactions Practice Quiz 10 minutes
Introduction to Inter-Corporate Investments Quiz 30 minutes

1 plugin Total 15 minutes

Demographic Survey 15 minutes

Investments between 50% and 100% give the acquirer firm control over the target firm for all operational and financial decisions of the target firm. These investments are accounted for using consolidation. In this module, you will explore accounting for consolidation

What's included

5 videos2 readings6 assignments

5 videos Total 24 minutes

Control Type of Investments 2 minutes
Consolidation with Full Ownership 8 minutes
Consolidation after Initial Investment 8 minutes
Consolidation without Full Ownership 4 minutes
Income Statement Consolidation 2 minutes

2 readings Total 20 minutes

Module 2 Overview 10 minutes
Module 2 Lecture Transcripts 10 minutes

6 assignments Total 100 minutes

Overview Practice Quiz 10 minutes
Consolidation with Full Ownership Practice Quiz 30 minutes
Consolidation after Initial Investment Practice Quiz 10 minutes
Consolidation without Full Ownership Practice Quiz 10 minutes
Income Statement Consolidation Practice Quiz 10 minutes
Control Type of Investments Quiz 30 minutes

There are various special issues in mergers and acquisitions. In this module, you will explore some common special considerations in mergers and acquisitions including definition of business, identifying the acquirer firm, bargain purchase, acquisition related costs, and earnouts.

What's included

6 videos2 readings6 assignments

6 videos Total 18 minutes

Special Considerations in Inter-Corporate Investments 1 minute
Definition of Business 4 minutes
Identifying the Acquirer Firm 2 minutes
Bargain Purchase 4 minutes
Acquisition Related Costs 3 minutes
Earnouts 4 minutes

2 readings Total 20 minutes

Module 3 Overview 10 minutes
Module 3 Lecture Transcripts 10 minutes

6 assignments Total 70 minutes

Definition of Business Practice Quiz 5 minutes
Identifying the Acquirer Firm Practice Quiz 5 minutes
Bargain Purchase Practice Quiz 10 minutes
Acquisition Related Costs Practice Quiz 10 minutes
Earnouts Practice Quiz 10 minutes
Special Considerations in Inter-Corporate Investment Quiz 30 minutes

There are various ways to conduct mergers and acquisitions. In this module, you will explore reverse acquisitions, step acquisitions, and accounting for deconsolidations.

What's included

4 videos2 readings4 assignments

4 videos Total 22 minutes

Special Types of Acquisitions 0 minutes
Reverse Acquisitions 4 minutes
Step Acquisitions 11 minutes
Deconsolidation 6 minutes

2 readings Total 20 minutes

Module 4 Overview 10 minutes
Module 4 Transcripts 10 minutes

4 assignments Total 47 minutes

Reverse Acquisitions Practice Quiz 5 minutes
Step Acquisitions Practice Quiz 6 minutes
Lesson 4-4: Deconsolidation Practice Quiz 6 minutes
Special Types of Acquisitions Quiz 30 minutes

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Build toward a degree

This course is part of the following degree program(s) offered by University of Illinois Urbana-Champaign. If you are admitted and enroll, your completed coursework may count toward your degree learning and your progress can transfer with you.¹