In this lesson, Nick Palazzolo, CPA, delves into the intricacies of business combinations, exploring the scenarios in which one company acquires another and takes on a significant level of ownership. He breaks down the concept of subsidiaries and sheds light on handling various components such as intercompany transactions, goodwill, and other related considerations. With a clear and engaging approach, he sets out the learning objectives, covering basic consolidation concepts like controlling and non-controlling interest, and delves into how to prepare for business combinations through adjustments, eliminations, and journal entries for acquired net assets. Additionally, he guides through correcting errors and making necessary financial statement adjustments to properly reflect measurement period adjustments in business combinations.
Lesson: Business Combinations Overview and Objectives
In this lesson, Nick Palazzolo, CPA, delves into the intricacies of business combinations, exploring the scenarios in which one company acquires another and takes on a significant level of ownership. He breaks down the concept of subsidiaries and sheds light on handling various components such as intercompany transactions, goodwill, and other related considerations. With a clear and engaging approach, he sets out the learning objectives, covering basic consolidation concepts like controlling and non-controlling interest, and delves into how to prepare for business combinations through adjustments, eliminations, and journal entries for acquired net assets. Additionally, he guides through correcting errors and making necessary financial statement adjustments to properly reflect measurement period adjustments in business combinations.
Updated: Oct. 20, 2021 Create an account