Accounting for Business Combinations & Other Equity Investments

Name: Accounting for Business Combinations & Other Equity Investments
Availability: InStock
Rating: 5.00 (8 reviews)

Equity investments can significantly impact a company's financial statements, affecting its valuation. Analysts need to accurately assess the value of these investments to determine the correct valuation of both the investment and the companies involved. Misunderstanding or misapplying accounting principles can lead to inaccurate financial analysis and valuation, potentially leading to incorrect investment decisions.

Undertake an accounting business consolidation when one company owns more than 50% of another company.
Apply the equity method of accounting for equity investment where the company exerts a significant influence.
Apply fair value accounting for investment where the company owns less than 20%.

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Corporate Finance Institute

Accounting for Business Combinations & Other Equity Investments

Overview

Accounting for Business Combinations & Other Equity Investments Overview

In CFI’s “Accounting for Business Combinations & Other Equity Investments”, we’ll demystify the core aspects of accounting for business combinations. You’ll discover how to undertake a business consolidation, apply the equity method to investments where a company exerts a significant influence as well as how to account for smaller equity investments. Throughout the course, we’ll engage in a series of practical mini case studies using Excel, allowing you to apply and solidify your understanding of these accounting techniques through hands-on practice.

Recommended Prep Courses

These preparatory courses are optional, but we recommend you complete the stated prep course(s) or possess the equivalent knowledge prior to enrolling in this course:

Who Should Take This Course?

This course teaches analysts about accounting rules for business consolidations and equity investments. It’s important for analysts to accurately assess the value of these investments to determine the correct valuation of both the investment and the companies involved.

Accounting for Business Combinations & Other Equity Investments Learning Objectives

Account for equity investments where one company owns more than 50% of another company’s equity
Calculate goodwill associated with a business combination
Account for equity investments where a company has significant influence over another company (owning between 20% to 50% of the company’s equity)
Account for equity investments where a company owns less than 20% of the equity of another company
Explain a key difference in accounting for equity investments under IFRS versus US GAAP

Prerequisite Courses

Recommended courses to complete before taking this course.

What You'll Learn

Lesson

Multimedia

Exams

Files

This Course is Part of the Following Programs

Why stop here? Expand your skills and show your expertise with the professional certifications, specializations, and CPE credits you’re already on your way to earning.

Accounting for Financial Analysts Specialization

Skills learned Accounting, Financial Analysis, Reading Financial Statements and more
Career prep Financial Planning & Analysis (FP&A), Corporate Development, Investment Banking, Private Equity, Equity Research, and more.

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What Our Members Say

Good course

If you want to understand the BC, FV under IFRS and US GAAP, Consolidation and different treatment in accounting... this course help you to do it

Lazhar Ben Ammar Issaoui

Educationally fulfilling

This course assisted me in correctly recording our fund's private equity investments on our balance sheet and income statement. Thank you again CFI!

Lee Anselmo Blackman

great experience and live workbook

Muhammed Gomaa

CFI creates good courses

The Accounting for Financial Analysts is good program. Great learning experience for free. Financial Modeling is a great way to learn and structure the thinking of a finance pro. Thank you CFI.

Abhinav Anand

Frequently Asked Questions

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What are the requirements to take the courses?

All of our certification programs are open to students and professionals in various industries and levels of experience. Our curriculum is designed to teach what you need to know from basic fundamentals to advanced practical case studies. To take the courses and complete the exercises, students will only need access to a PC and/or Mac, Microsoft Suite (2016 or newer), and a stable internet connection. Click here to view the Technical Requirements

Can I download the Excel files and financial modeling templates for the course?

Absolutely! All the files and templates needed in a course are available for download. Just look for a module that shows Downloadable Files within the course dashboard. See here for a visual guide on how to do this.

How long do I have to complete the courses?

You will have yearly access to the courses as long as you maintain an active subscription. All the courses are self-paced as well so you can take your time in learning without worrying about any deadlines. Click here to compare our available enrollment options.

Are CFI courses officially accredited?

Yes, CFI is accredited by the Better Business Bureau® (BBB) to maintain training standards, the CPA Institutions in Canada, and the National Association of State Boards of Accountancy (NASBA) in the USA. Most of our courses qualify for verified CPE credits for CPA charter holders. Please refer to this page to view all available CPE credits.

Are there any additional fees or costs?

None! The bundle price includes everything and there are no additional fees or charges to earn your digital certification. You can see our enrollment fees listed here.

What currency are your courses priced in?

All our online courses are priced in USD. As this is a recurring payment, we accept all major credit and debit cards including Visa, MasterCard, and American Express.

How do I earn my certificates?

Students must complete all the video lessons, quizzes, and final assessments in each course. You can retake the assessments as many times as necessary until you reach an 80% passing grade. For more information on how to earn a course certificate, click HERE.

How are the exams conducted?

Students are required to complete an online assessment (Multiple choice questions, Fill-in-the-Blanks, and Excel Questions) at the end of each course. You can take the exams on your own schedule and will need to earn at least 80% to pass the course and earn your certificate of course completion. Please note that course exams can be repeated as many times as you need. Students are also required to complete the FMVA® final exam to earn their certification. How to Take a Qualified Assessment

Can I email the instructor if I have questions?

While the courses are designed mainly for self-study, we are happy to provide email assistance for general or technical support inquiries. The Full Immersion bundles include a premium email support function that allows you to communicate directly with in-house experts regarding course content. This is one of the key features that sets the Full Immersion bundle apart and makes it a worthwhile upgrade over the more affordable self-study bundle. You can compare more features in our bundles here.

Will these courses help me advance my career?

Based on hundreds of reviews from thousands of students we know how CFI courses have helped so many people advance their finance careers. Our courses are designed to be extremely practical and simulate the experience of being trained as a professional financial analyst…the ultimate way to advance your career. For real-world examples and to help delve even deeper into the course concepts, please look into our free career resources library.

What is CFI's refund policy?

Except as required by law, all payments to CFI are non-refundable, including fees and any other associated charges. Canceling your subscription will not generate a refund. Your access to CFI's paid content will remain active until your current billing cycle ends. For more information please visit our refund policy page.

Accounting for Business Combinations & Other Equity Investments

Overview

Accounting for Business Combinations & Other Equity Investments Overview

Who Should Take This Course?

Accounting for Business Combinations & Other Equity Investments Learning Objectives

Prerequisite Courses

What You'll Learn

Introduction

100% Consolidations

80% Control Consolidations

Goodwill

The Equity Method

Fair Value

Summary

This Course is Part of the Following Programs

Accounting for Financial Analysts Specialization

What Our Members Say

Lazhar Ben Ammar Issaoui

Lee Anselmo Blackman

Muhammed Gomaa

Abhinav Anand

Dr Gregory Gray Jr

Anamul Haque

Ahmad Nasr

Peter Herszenyi

Frequently Asked Questions