NEW YORK UNIVERSITY
Stern School of Business
Accounting for Mergers, Acquisitions and Related Matters
Fall 2008
C10.0022
Prof. John Bildersee
jbilders@stern.nyu.edu
Tel. 212-998-0027
10-79 KMC
Class web site: Blackboard
Monday & Wednesday 11:00 – 12:15
Text: Advanced Financial Accounting (Custom Text from 9th edition – Hoyle,
Schaefer & Doupnik)
Course Content: This course concentrates on mergers and acquisitions and the
development of consolidated financial statements. It also covers accounting for
international operations and selected financial instruments. The primary focus is
on statement development and problem solving. Some analysis will be included.
The course can be immediately helpful as past students have frequently
volunteered that the course materials have helped them in job interviews.
Attendance: This course is different from the typical accounting course which
goes from topic to topic. The materials in this course are detailed and build on
materials presented earlier in the semester so difficulties faced early in the
semester should be dealt with promptly. Attendance and completion of
homework are important. You should attend every class to assure a good
understanding of the course materials.
Homework: Assigned homework 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 due on the first date of the following chapter
to assure some discussion prior to doing the exercises and to aid in preparation
for any quiz on that chapter. The homework due dates may change if our
experience deviates from this schedule. 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.
Many of the relevant materials will be provided as handouts.
Exams: There are two midterms and a final. Exams are open book. There are
no make-up exams. If you cannot take an exam at the scheduled time you are
expected to take it early. The exams will be given on the stated dates. The
topics may change if the course falls behind schedule.
Quizzes: There will be several 15 minute quizzes. Quizzes are open book.
Quizzes cannot be rescheduled. There are no make-up quizzes. Quizzes are
scheduled for the first class following a given chapter and will focus on that
chapter. The dates of the quizzes may change if our experience deviates from
this schedule. The quizzes cannot hurt your course (percent) average. Instead,
they may be used to reduce up to 70% of the impact of your poorest exam.
You are expected to follow the undergraduate code of conduct and the
graduate honor code throughout the semester.
Tentative Grading:
Exam 1
29 points
Exam 2
29 points
Exam 3
29 points
Classroom attendance and homeworks
13 points
Classroom participation
Possible extra credit
An alternate weighting will be used if an exam is missed.
We follow Stern’s default policies for anything not covered here.
Date
Topic
9/3
Introduction
Consolidations on Acquisition –
9/8
Acquisition Method – Balance Sheet
Consolidations – Acquisition Method –
9/10
Balance Sheet
Consolidations - Acquisition Method 9/15
Intangibles
Consolidations – Balance Sheet –
Purchase Method & Pooling (Old
9/17
Methods)
Accounting for Minority Investments –
9/22
Passive Investments, Equity Method
Accounting for Minority Investments –
Equity Method
9/24
Consolidations – After Date of
Acquisition (including Cost and Equity
9/29
Methods)
Consolidations – After Date of
10/1
Acquisition – Income Statement
Consolidations – After Date of
10/6
Acquisition – Income Statement
Consolidations – After Date of
10/8
Acquisition – Income Statement
Reading
Ch 2 (except
pp 61-68)
Ch 2 (except
pp. 61-68)
Ch 2 (except
pp. 61-68)
Ch 2 (pp. 61 –
68)
Ch 1
Ch 1
Ch 3
Assigned Problems
Classroom
Discussion
Homework Due
2-7, 2-8
2-9, 2-10
2-13, 2-14
2-21, 2-28,
Comprehensive
Problem
1-4, 1-5
2-12, 2-18, Quiz
(Chp 2)
1-11, 1-14
Comprehensive
Problem
3-4, 3-7
1-12, 1-17, Quiz
(Chp 1)
Ch 3
3-11, 3-12
Ch 3
3-13
Ch 3
3-22
10/13
No Class-Undergraduate Schedule
Consolidations – After Date of
Acquisition – Impairment
Ch 3
10/15
10/20
10/22
Consolidations – After Date of
Acquisition – Partial Acquisitions/
Review
Examination 1 (through chp 3)
Consolidations – After Date of
Acquisition – Partial Acquisitions
10/27
10/29
11/3
11/5
Consolidations – Intercompany
Transactions – Sales
Consolidations – Intercompany
Transactions – Land & PPE
Segment and Interim Reporting
Foreign Currency – Introduction
11/10
11/12
11/17
11/19
11/24
11/26
12/1
Foreign Currency Conversions–
(Current Method)/ Review
Examination 2 (Chps 4 – 5)
Foreign Currency Conversions –
(Temporal Method)
Foreign Currency - Consolidations
Ch 4
Ch 4
4-15 thru 4-19,
4-26
Comprehensive
Problem
Ch 5
5-2, 5-8, 5-10 4-22, 4-27, Quiz
thru 15
(Chp 4)
Ch 5
5-20
Comprehensive
Problem
Ch 8
8-19, 8-32
Ch 10
10-4, 10-5
5-22, 5-25, Quiz
(Chp 5)
Ch 10
10-6, 10-7, 10-8,
10-9
(Chps 2 -3 are included as bases for chps 4 – 5)
Ch 10
10-8, 10-9
Ch 10
No Class – Thanksgiving
Foreign Currency – Transactions
Ch 9
Foreign Currency – Forwards, Hedges Ch 9
12/3
Foreign Currency – Commitments,
Forecasted Transactions/ Review
12/8
12/15
Final Exam (Chps 9-10)
3-16,
Comprehensive
Problem
4-1, 4-5, 4-12 3-17, 3-18, 3-19,
thru 4-14
3-21
Ch 9
10-35
Comprehensive
Problem
9-1, 9-4
9-9, 9-15 thru 9- 10-15, 10-28,
17
Quiz (Chp 10)
9-41
9-21, 9-22, 9-33
Comprehensive
Problem