ACCOUNTG 596 - Accounting for Mergers and Acquisitions

Course Overview

The principal objective of this course is to provide in-depth understanding of financial reporting issues related to business combinations, intercorporate investments, joint ventures, leveraged buyouts, and similar corporate restructurings. International accounting is also included. All of these transactions often have a major impact on financial statements, and understanding their economic substance and the ways they are reflected in corporate financial statements is essential to sophisticated financial statement analysis. Each topic is introduced by discussing the business environment producing the various transactions and related reporting issues. The key measurement and reporting issues are then examined, and their impact on the interpretation of financial statements is analyzed. This course builds on the corporate reporting concepts and methods studied in ACCOUNTG 340. It is helpful, though not necessary, to have completed ACCOUNTG 342 (or an equivalent course).

Course Requirements

Classes are a mixture of lectures and discussion. Lectures summarize major background and technical issues, but assigned problems and cases are the major focus of class discussion. Grades will be determined based on two in-class examinations, a take-home final and class participation.

Representative Topics

Representative Readings

The principal textbook is Advanced Accounting by Beams, Anthony, Clement, and Lowensohn, 9th edition, published by Pearson Education, Inc., 2006 (ISBN 0-13-185122-5).  A coursepack containing lecture notes, assignment solutions and old examinations is also requried.