Advanced Financial AccountingModule Details

The rationale behind every module is to offer the student all possible knowledge in each module of the course, in order to be able to deepen their understanding and render them capable of practically applying it. Advanced Financial Accounting will provide the students with a detailed analysis of the preparation of consolidated financial statements, including elimination of inter-company liabilities, inter-company inventory transfers and inter-company plant asset transfers. Moreover, the module will demonstrate the consolidation procedures for step acquisitions and inter- company investment in preferred stock.

After completion of the course students are expected to be able to:
Explain why firms engage in business combinations and learn the consolidation procedures on acquisition day when the subsidiary is dissolved or when it remains in business.
Prepare consolidated financial statements in the years subsequent to the business combination including the amortization of goodwill and elimination of inter-company liabilities.
Prepare consolidated financial statements when there is minority interest and the parent has gained control during the accounting period.
Prepare consolidated financial statements when inventory or land and other depreciable fixed assets have been sold between the parent and the subsidiary.
Prepare consolidated financial statements when bonds have been issued between the parent and the subsidiary company. Be able to prepare a consolidated cash flow statement.
Be able to prepare consolidated financial statements when the parent company has invested in both preferred and common shares of the subsidiary. Illustrate the consolidation process depending on whether the preferred stock is treated like debt or equity