This course covers the accounting for business combinations (ASC 805), the preparation of consolidated financial statements (ASC 810), and other related topics including, but not limited to: step-by-step acquisition, deconsolidation, segments reporting, and the goodwill impairment test. This course begins with a discussion of the scope of ASC 805 and the differences between business combinations and asset acquisitions. Next, the course explores the measurement and recognition principles of the acquisition method to account for business combinations. Then, the course covers the consolidation process. You will learn how to prepare the consolidated financial statements and make all of the necessary consolidation adjustments.
![University of Illinois at Urbana-Champaign](https://d3njjcbhbojbot.cloudfront.net/api/utilities/v1/imageproxy/http://coursera-university-assets.s3.amazonaws.com/d8/42cdc0ab2011e8b910bdf80bed9f6c/CenterILblock-ISQUAREOrangeBackgrnd.png?auto=format%2Ccompress&dpr=1&w=28&h=28)
![University of Illinois at Urbana-Champaign](https://d3njjcbhbojbot.cloudfront.net/api/utilities/v1/imageproxy/http://coursera-university-assets.s3.amazonaws.com/1d/7a53408c1411e7983a499797d625fe/200x48-illinois.png?auto=format%2Ccompress&dpr=1&w=&h=45)
Advanced Financial Reporting: Accounting for Business Combinations and Preparation of Consolidated Financial Statements
Taught in English
Some content may not be translated
18,230 already enrolled
Course
Gain insight into a topic and learn the fundamentals
![Michael Kustanovich, CPA](https://d3njjcbhbojbot.cloudfront.net/api/utilities/v1/imageproxy/https://coursera-instructor-photos.s3.amazonaws.com/71/26413f0e7040f1b907351efa7ae50d/mkustan.jpg?auto=format%2Ccompress&dpr=1&w=75&h=75&fit=crop)
Instructor: Michael Kustanovich, CPA
(171 reviews)
Details to know
![](https://d3njjcbhbojbot.cloudfront.net/api/utilities/v1/imageproxy/https://coursera_assets.s3.amazonaws.com/images/31ebcba3851b87d1d8609abf15d0ff7e.png?auto=format%2Ccompress&dpr=1&w=24&h=24)
Add to your LinkedIn profile
43 quizzes
See how employees at top companies are mastering in-demand skills
![Placeholder](https://d3njjcbhbojbot.cloudfront.net/api/utilities/v1/imageproxy/https://coursera_assets.s3.amazonaws.com/images/74c8747e8210831049cf88dd4eefe26c.png?auto=format%2Ccompress&dpr=2&blur=200&px=8&max-w=320)
![Placeholder](https://d3njjcbhbojbot.cloudfront.net/api/utilities/v1/imageproxy/https://coursera_assets.s3.amazonaws.com/images/de1a6556fbe605411e8c1c2ca4ba45f1.png?auto=format%2Ccompress&dpr=2&blur=200&px=8&max-w=259)
Earn a career certificate
Add this credential to your LinkedIn profile, resume, or CV
Share it on social media and in your performance review
![Placeholder](https://d3njjcbhbojbot.cloudfront.net/api/utilities/v1/imageproxy/https://coursera_assets.s3.amazonaws.com/images/de1a6556fbe605411e8c1c2ca4ba45f1.png?auto=format%2Ccompress&dpr=2&blur=200&px=8&max-w=333)
There are 9 modules in this course
You will become familiar with the course, your instructor and your classmates, and our learning environment. This orientation will also help you obtain the technical skills required to navigate and be successful in this course.
What's included
3 videos4 readings1 quiz1 discussion prompt
In this module, you will be introduced to the concepts of control over a business. You will learn different accounting methods used to account for investments in equity securities, the basics of control, the scope of "Business Combination" (ACS 805), as well as the methods to record an acquisition of a group under asset acquisition and business combination.
What's included
5 videos1 reading5 quizzes
In this module, you will be introduced to the acquisition method of accounting for a business combination. You will learn the measurement principles for an acquisition and the goodwill equation to calculate the goodwill or gain from a bargain purchase as a result of the business combination. You will also learn how to prepare the consolidated financial statements on the business combination date.
What's included
4 videos1 reading4 quizzes
In this module, you will be introduced to different components of consideration transferred in a business combination. You will learn the measurement principles of share-based payment awards and will examine a real-life merger between Express Scripts and Medco companies. Moreover, you will be introduced to the concept of contingent consideration and learn the methods to classify, recognize, and record contingent considerations.
What's included
4 videos1 reading3 quizzes
In this module, you will gain a deeper understanding of the assets acquired and the liabilities assumed in a business combination. You will be introduced to different types of identifiable assets acquired, such as defensive intangible assets and in-process research and development (IPR&D), and the rules to recognize and measure them under U.S. GAAP and IFRS. You will also learn the difference between a taxable transaction and a non-taxable transaction and how to calculate deferred taxes on an acquisition date.
What's included
5 videos1 reading5 quizzes
In this module, you will learn how to prepare the consolidated financial statements after the acquisition date. The concept of accounting acquisition premium (AAP), and the methods to calculate identifiable and unidentifiable portions of the accounting acquisition premium will be introduced. You will also learn the effects of accounting acquisition premium on the consolidated financial statements and the relevant consolidation adjustments. Moreover, you will be introduced to intercompany inventory transactions and learn to make consolidation adjustments for intercompany inventory sales and intercompany inventory profits.
What's included
5 videos1 reading5 quizzes
In this module, you will be introduced to more types of intercompany transactions as well as noncontrolling interests. You will learn the consolidation adjustments for intercompany transactions with depreciable assets and intercompany debt. The noncontrolling interest (NCI) will be introduced. You will learn the definition, calculation, and presentation of noncontrolling interest and net income attributable to NCI in the consolidated financial statements. You will also learn how to report consolidated retained earnings and the subsequent measurement of noncontrolling interests. Lastly, an example of consolidation with noncontrolling interest will be shown.
What's included
6 videos1 reading7 quizzes
In this module, we will explore the accounting rules for changes in the percentage of ownership of a Subsidiary and other topics that relate to business combinations. You will learn how to account for a business combination that was achieved in stages, and how to calculate the gain or loss on deconsolidation of the Subsidiary. Also, you will be introduced to the situation in which the Subsidiary acquires shares of the Parent and learn the methods to measure and record the transaction.
What's included
5 videos1 reading5 quizzes
In this module, you will be introduced to segment reporting and the goodwill impairment test. You will learn the rules for public companies to disclose segment information in the notes to annual and interim financial statements. You will also learn what information should be presented in the entity-wide disclosures and when. Then, the methods for identifying the reporting units, qualitative assessment for goodwill impairment, and the quantitative one-step goodwill impairment test will be introduced. You will also learn the goodwill impairment test under IFRS and the rules for private companies to account for goodwill.
What's included
7 videos3 readings8 quizzes1 plugin
Instructor
![Michael Kustanovich, CPA](https://d3njjcbhbojbot.cloudfront.net/api/utilities/v1/imageproxy/https://coursera-instructor-photos.s3.amazonaws.com/71/26413f0e7040f1b907351efa7ae50d/mkustan.jpg?auto=format%2Ccompress&dpr=1&w=75&h=75&fit=crop)
Recommended if you're interested in Business Essentials
University of Illinois at Urbana-Champaign
University of Illinois at Urbana-Champaign
University of Illinois at Urbana-Champaign
University of Illinois at Urbana-Champaign
Get a head start on your degree
This course is part of the following degree programs offered by University of Illinois at Urbana-Champaign. If you are admitted and enroll, your coursework can count toward your degree learning and your progress can transfer with you.
Why people choose Coursera for their career
![](https://d3njjcbhbojbot.cloudfront.net/api/utilities/v1/imageproxy/https://coursera_assets.s3.amazonaws.com/growth_testimonials/passionate_learner/Felipe_Moitta.png?auto=format%2Ccompress&dpr=1&w=64&h=64&fit=crop)
![](https://d3njjcbhbojbot.cloudfront.net/api/utilities/v1/imageproxy/https://coursera_assets.s3.amazonaws.com/growth_testimonials/passionate_learner/Jennifer_John.png?auto=format%2Ccompress&dpr=1&w=64&h=64&fit=crop)
![](https://d3njjcbhbojbot.cloudfront.net/api/utilities/v1/imageproxy/https://coursera_assets.s3.amazonaws.com/growth_testimonials/passionate_learner/Larry_Tao_Wang_1.png?auto=format%2Ccompress&dpr=1&w=64&h=64&fit=crop)
![](https://d3njjcbhbojbot.cloudfront.net/api/utilities/v1/imageproxy/https://coursera_assets.s3.amazonaws.com/growth_testimonials/passionate_learner/Chaitanya_Anand.png?auto=format%2Ccompress&dpr=1&w=64&h=64&fit=crop)
Learner reviews
Showing 3 of 171
171 reviews
- 5 stars
79.53%
- 4 stars
16.37%
- 3 stars
1.16%
- 2 stars
1.16%
- 1 star
1.75%
New to Business Essentials? Start here.
![Placeholder](https://d3njjcbhbojbot.cloudfront.net/api/utilities/v1/imageproxy/https://coursera_assets.s3.amazonaws.com/images/7a1c0e2e779c1ff27cae62480adfe003.png?auto=format%2Ccompress&dpr=2&blur=200&px=8&max-w=120)
Open new doors with Coursera Plus
Unlimited access to 7,000+ world-class courses, hands-on projects, and job-ready certificate programs - all included in your subscription
Advance your career with an online degree
Earn a degree from world-class universities - 100% online
Join over 3,400 global companies that choose Coursera for Business
Upskill your employees to excel in the digital economy
Frequently asked questions
Access to lectures and assignments depends on your type of enrollment. If you take a course in audit mode, you will be able to see most course materials for free. To access graded assignments and to earn a Certificate, you will need to purchase the Certificate experience, during or after your audit. If you don't see the audit option:
The course may not offer an audit option. You can try a Free Trial instead, or apply for Financial Aid.
The course may offer 'Full Course, No Certificate' instead. This option lets you see all course materials, submit required assessments, and get a final grade. This also means that you will not be able to purchase a Certificate experience.
When you purchase a Certificate you get access to all course materials, including graded assignments. Upon completing the course, your electronic Certificate will be added to your Accomplishments page - from there, you can print your Certificate or add it to your LinkedIn profile. If you only want to read and view the course content, you can audit the course for free.
You will be eligible for a full refund until two weeks after your payment date, or (for courses that have just launched) until two weeks after the first session of the course begins, whichever is later. You cannot receive a refund once you’ve earned a Course Certificate, even if you complete the course within the two-week refund period. See our full refund policy.