1 / 17

ACT 3126 Advanced Financial Accounting I

ACT 3126 Advanced Financial Accounting I. Pn Asna Atqa Abdullah asnaatqa@econ.upm.edu.my 03 – 89467636. Content. Learning outcomes General overview Discussion of each topic References Assessment. Learning outcomes.

coty
Download Presentation

ACT 3126 Advanced Financial Accounting I

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. ACT 3126Advanced Financial Accounting I Pn Asna Atqa Abdullah asnaatqa@econ.upm.edu.my 03 – 89467636

  2. Content • Learning outcomes • General overview • Discussion of each topic • References • Assessment

  3. Learning outcomes • Prepare group accounts in accordance with financial reporting requirements. • Identify effects of foreign exchange transactions on financial position and to account for those transactions. • Evaluate share and business valuations and produce a report by working in groups in the time frame provided. • Prepare accounts for business combinations including business acquisitions and disposals.

  4. General overview Share & business valuation Business combination × GROUP GROUP Absorption Acquisition Amalgamation Takeover

  5. General overview GROUP Principles Goodwill FRS 3 Group Cash Flow FRS 107 GROUP ACCOUNTS Foreign Currency Operation FRS 121 Investment in Associates FRS 128 Investment in JV FRS 131

  6. Share & business valuation • What is? • Are they necessary? • Significant techniques available? • Latest updates?

  7. Business acquisition & combination • How do we combine businesses? • How to account for the combination? • Realisation a/c – seller • Business purchase a/c – buyer

  8. Introduction to Group Accounts • What are merger & acquisition? • Difference between the two? • Why some prefer merger, else prefer acquisition? • The process?

  9. PRE and POST considerations • What adjustments required? • How does goodwill come into the picture? • Pre- and Post-:how do we allocate? • New terms : minority interest, inter-company balances

  10. Inter-company transactions • How do we accounts for : • sales of stocks • sales / transfer of fixed assets • other transactions • what price? • how do we show them in the books?

  11. Goodwill • What is? • Why do / should we recognise? • Is it valuable?

  12. Associates & Joint Ventures • What are? • Differences with merger & acquisition? • Accounting treatment?

  13. Foreign Currency Operation • Issues with foreign currencies Group Cash Flow Statement • How does it differ from the basic Cash Flow Statement?

  14. References: • Companies Act 1965 • All related standards, including ED • Lazar & Tan (2006). Company Accounts & FinancialReporting (6th Ed.) • Tan (2005). Consolidated Financial Statements (4th Ed.) • Tan (2001). Financial Accounting & Reporting in Malaysia, Vol. 2 (2nd Ed.) • Ng (2006). A Practical Guide to Financial Accounting Standards (Malaysia). • Free online information on business combinations and other topics

  15. Assessment: • GROUP ASSIGNMENT# 20% • TEST 1 * 15% • TEST 2 ** 15% • FINAL EXAM 50% 100% #Due date 9/6/08, 8pm *Test 1: 22/4/08, 8-9.45pm, DKEP4 **Test 2: 27/5/08, 8-9.45pm, DKEP4

  16. Assignment • Topic: share & business valuations • Question to be given

  17. THANK YOU ENJOY YOUR STAY.

More Related