高级财务会计 陈信元 introduction and chapter 1.ppt

12 Introduction toAdvanced Accounting 1. Classification of Financial Accounting ? Fundamental accounting: Basic procedures and techniques of accounting are introduced. ? Intermediate accounting: Basic theories and methods of financial accounting are discussed. ? Advanced accounting: Application of financial accounting theories and methods in specific industries and transactions is described. 2. Topics of Advanced Accounting ? Business combination and CFS ? Partnership and branch accounting ? Issues in special reporting ? Accounting for foreign operations ? Governmental and nonprofit organization accounting ? other topics 3. References ? Floyd A. Beams: Advanced Accounting, 10th ed. 2009 ? Legal requirements, accounting standards (CAS, 2006) and systems in PRC Chapter 1Business Combination additional readings: CAS No.20 1. Concepts, Reasons and Legal Form of B.C. 11. Concepts 1) definitions general meaning: the union of business entities FASB Statement No. 141: p.21 of textbook 2) characteristics ? the economic entity is formed ? one single management team control 3) classification ? horizontal integration ? vertical integration ? conglomeration 12. Reasons 1) profitability 2) operating efficiencies 3) diversification of business risks business expansion thru. combination or construction ? ? cost advantage ? lower risk ? fewer operating delays ? avoidance of takeovers ? intangible assets acquisition ? tax advantages 13. Legal form of B.C. 1) merger ? acquisition of net assets ? the acquiring company continues to be a SLE. ? the acquired company ceases to exist as a SLE, and its books are closed. ? the acquiring firm records separate assets and liabilities ? A + B = A 2) consolidation ? a new firm is formed ? the acquired firms normally cease to continue as SLEs. ? the new firm records the separate assets and liabilities ? A + B = C 3) acquisition ? majority (50%) equity in