If you do well in this course, you will be able to:
- Perform accounting procedures and prepare financial statements for business combinations such as
statutory mergers, statutory consolidations and stock acquisitions
- Determine the proper method of accounting for the ownership of inter-corporate investments in common
stock to include either consolidated financial statements, the equity method or the cost method of
financial reporting
- Prepare work papers to enable the proper elimination of the effects of inter-corporate ownership and
intercompany transactions on the consolidated balance sheet as of the date of acquisition
- Prepare work papers to enable proper elimination of the parent's inter-corporate investment balance and
the subsidiary's equity accounts, income from the subsidiary recognized by the parent and intercompany
receivables and payables for the purpose of preparing consolidated financial statements for periods
subsequent to the purchase of a subsidiary
- Account for the removal of intercompany transactions such as unrealized intercompany profits,
unrealized gains and losses, transfer of inventory and issuance/sale of bonds
- Explain the use of foreign currency exchange rates, foreign currency forward exchange contracts and fair
value and cash flow hedges
- Restate financial statements of a foreign business entity into U.S. dollars using translation of the foreign
currency or re-measurement of the foreign entity's statements
- Apply accounting procedures to the formation and the operations of a partnership including equitable
allocation of profit and loss in accordance with partnership agreements and to a termination or
liquidation of a partnership
- Understand the concepts of current resource measurement focus and modified accrual basis for
governmental fund financial statements and the economic resource measurement focus
for governmentwide statements, proprietary and fiduciary fund statements
- Account for revenues and expenditures in governmental, proprietary and fiduciary funds and understand
the reporting requirements of GASB 34
- Understand financial reporting for private, not-for-profit entities including classification of restricted and
unrestricted net assets and accounting for contributions and pledges