Inter-Company Investments and Consolidated Financial Statements

This course will cover the accounting for investments in debt and equity securities, and investments in net assets as a prelude to understanding consolidations of financial statements. The consolidation of financial statements will be covered in detail including understanding the elimination of inter-company dividents, inter-company transactions, and inter-company accounts. Goodwill and other adjustments are covered, along with the creation and adjustments to Minority Equity.

08-Sep-2008 -- 09-Sep-2008New YorkUSD$2375
NY Institute of Finance - Midtown9:00am - 4:30pm Instructional Method:
Group-Live
Instructor(s): [ Christopher Broderick; ] Mon Tue Level: Intermediate
CPE Credits: 14.0

This program will benefit anyone who wishes to enhance their existing skills and learn new ones. It should be of particular interest to: entry level finance professionals, investment professionals, research analysts, corporate bankers, fixed income analysts, credit analysts, mergers and acquisition professionals, equity analysts and mid-level career transitions.
No advance preparation required.
Students will be able to:
  • Understand the various methods one company can invest in another corporation, including investments in debt securities, equity securities and net assets.
  • Focusing on controlling investments in equity securities, understand the differences between the cost, equity and fair market value methods of investments in equity securities.
  • For controlling equity investments, participants will be able to combine two or more companies into one consolidated financial statement, eliminating various inter company relationships to produce a stand alone statement.
The participants must have completed the accounting bootcamp course.
  • Advanced Financial Accounting Topics
  • Accounting for Derivatives & Hedging
  • Accounting for Mergers & Acquisitions
    • Day 1

    Accounting for Investments

    • Investments in debt securities (including fair market value adjustments)
    • Investments in equity securities (including fair market value adjustments)
    • Purchase method of accounting for cash and stock acquisitions
    • Cost and equity method accounting
    • Net asset acquisitions
    • Case: Coca-Cola

    Consolidated Financial Statements

    • Structure and creation of consolidated financial statements
    • Elimination of intercompany dividends
    • Elimination of intercompany transactions

    Day 2

    Consolidated Financial Statements (con'd)

    • Elimination of intercompany accounts
    • Creation of goodwill and other adjustments (revaluation of identifiable tangible and intangible net assets, et.al)
    • Minority equity
    • Minority interest in income of subsidiaries
    • Dividents paid to minority shareholders

    Clients who register for this course will receive a complimentary 6 month subscription to the Financial Times and FT.com. The Financial Times is the world's most respected financial newspaper providing a broad assessment on finance, business and the industrial sector. Subscriptions will start within 6-8 weeks of the application process, and are limited to one per client. For questions about your subscriptions call 800-628-8088 or email uscirculation@ft.com. US and Canada enrollees only.

    Lunch included for all students taking day classes.