NEW YORK UNIVERSITY
Stern School of Business
Accounting for Mergers, Acquisitions and Related Matters
Prof. John Bildersee
Tel. 212-998-0027
317 Tisch Hall
Fall 2006
jbilders@stern.nyu.edu
Class web site: Blackboard
Text: Advanced Financial Accounting (New 10th edition - Huefner, Largay &
Hamlen)
Course Content: This course concentrates on Mergers and Acquisitions and
Consolidated Financial Statements. It also covers accounting for international
operations and financial instruments. The primary focus is on mechanics and
problem solving. Some analysis will be included. The course does not cover all
the CPA related materials that might be found in a two semester advanced
accounting sequence.
Attendance and homework exercises: Attendance and completion of homework
are essential. You should attend at least 80% of the classes to get a good
understanding of the course materials. Assigned homeworks are short and
should be handed in at the beginning of class. Do not spend too much time on
any question. Instead, try to work the exercise in your own way and, if you are
stuck, try to understand the answer that is on Blackboard. There is no need to
copy the answer as I am looking for a honest effort, not perfection. Homework is
not assigned on the first day of a given chapter so there can be some topical
discussion prior to doing the exercises. Late homeworks will be accepted for
reduced credit if received by the next class period.
Classroom performance: Exercises designated for the classroom should be
reviewed before class. You are expected to be able to contribute to
discussions about the exercises as well as other classroom discussions.
Although it may be difficult to contribute to the discussion due to the large size of
the class contributions during class can only help your grade.
Support materials: Visit Blackboard early and often. It has announcements, class
notes, slide shows, spreadsheets, sample exams and miscellaneous articles.
Tests and quizzes: There are two midterms and a final. There may also be short
quizzes. Exams are open book. There are no make-up exams or make up
quizzes. If you cannot take an exam at the scheduled time you are expected to
take it early. Quizzes cannot be rescheduled.
Tentative Grading:
Test 1
Test 2
Test 3
Classroom attendance and homeworks
Classroom participation
28 points
28 points
28 points
16 points
Possible extra credit
The exams will be given on the stated dates. The topics may change if the
course falls behind schedule.
Quizzes will be scheduled for the start of a chapter and will focus on the previous
chapter. The quizzes cannot hurt your course (percent) average. Instead, they
may be used to reduce the impact of an exam.
Topics
Introduction
Mergers and Acquisitions –
Accounting Methods
Mergers and Acquisitions –
Contingencies & Intangibles
Consolidations – Balance Sheet
Consolidations – Balance Sheet
Consolidations – Balance Sheet
Readings
Assigned Problems
Classroom
Disscussion Homework Due
Ch 1
E1.1, E1.2
Ch 1 (except
pp 34-38 &
143-146)
Ch 3 (except
pp 123-127 &
143-146)
Ch 3
Ch 3
E1.5, E1.10 E1.8, P1.1
(Req 1),
P1.9, P1.10
E3.1
Quiz (Chp 1)
E3.2, E3.7
E3.8, P3.2,
P3.4
E3.11, E3.12, E3.5, E3.6,
Ch 1 (pp 34Consolidations – Balance Sheet –
P3.3[1]
38) and Chp 3
Acquisition Method
(pp123-127)
E3.4, P3.7,
Consolidations – Balance Sheet Ch 1 (pp 40P3.11
Pooling
47) & Chp 3
(pp 143-146)
Ch 4 (except
E4.1, E4.4, Quiz (Chp 3)
Consolidations – After Date of
Acquisition (including Cost and Equity pp 189-192)
Methods)
Consolidations – After Date of
Ch 4
E4.3, E4.9,
E4.10
Acquisition
Examination 1 (through chp 3)
Consolidations – After Date of
Ch 4 (including E4.2, E4.11,
P4.1
pp 189-192 &
Acquisition
appendix)
Ch 4 (including
E4.13
E4.1, E4.12, E4.8,
Consolidations – After Date of
pp 189-192 &
P4.6
Acquisition – Cash Flows
appendix)
Consolidations – Intercompany
Ch 5 (pp. 233Transactions – Land
243)
Consolidations – Intercompany
Ch 5 (pp. 249Transactions – PPE
254)
Consolidations – Intercompany
Ch 5 (pp. 244Transactions – Sales
257)
Small Investments (Market Method) & Figure 4.2 &
Ch 9 (except
Foreign Currency – Introduction
pp. 461-464)
Foreign Currency Translation–
Ch 9 (except
(Current Rate Method)
pp. 461-464)
E5.1, E5.2 Quiz (Chp 4)
E5.5, E5.7
E5.3, E5.6, E5.9, E5.11, P5.1,
P5.10
P5.2
Handout Quiz (Chp 5)
E9.2, E9.5,
E9.9
(Translation)
(Note: Chp 3 is covered on exam 1 & exam 2)
Examination 2 (Chps 3 - 5)
Foreign Currency Translation –
Ch 9 (except
E9.2, E9.5,
Remeasurement (Temporal Method) pp. 461-464)
E9.9
(Remeasure
ment)
Foreign Currency –Consolidations
Ch 9 (except
E9.14, P9.2 E9.3, E9.4
pp. 461-464)
Foreign Currency - Consolidations
Ch 9 (except
P9.9
pp. 461-464)
Foreign Currency – Transactions
Ch 10
E10.1, E10.2, Quiz (Chp 9),
E10.4
P9.6
Foreign Currency – Forwards, Hedges Ch 10
E10.5, E10.6
Foreign Currency – Commitments,
Ch 10 inc Appx E10.7, E10.8, E10.3
Forecasted Transactions
2
E10.9
Review
Final Exam (Market Method, Chps
9-10)
Possible Addition – if time permits:
Conceptual Issues –Consolidated
Reporting, Pushdown Accounting &
Segment Reporting
Mod A (pp.
A1-A7; A13A21); Mod D
EA.2, EA.7,
ED.2, ED.5