ØBR118 Business Combinations

Contents and structure

The course builds on BØA117 "Financial accounting with analysis" or an equivalent course. Together with ØBR114 and ØBR116, the course covers the requirements for the profiling subjects Financial accounting and Accountant regulations and accounting organization in Recommended plan, Bachelor in business administration - profiling accountant.

The course covers regulation and accounting of the equity method in company accounts and group accounts, regulation and preparation of group accounts, and regulation and accounting treatment of mergers and demergers. The content of the course is mainly within what is regulated in the Accounting Act on these topics, as well as NRS 9 Mergers, NRS 17 Business acquisitions and group accounting, and the preliminary accounting standards from NRS on investment in associated companies etc. and about demerging.

Learning Outcome

After completing the course, the student must:

• have in-depth knowledge of the regulation of the equity method in company accounts and group accounts and knowledge and skills about the accounting treatment of the equity method in company accounts and group accounts.
• have in-depth knowledge of the regulation of group accounts and have the knowledge and skills to be able to prepare group accounts at the time of acquisition and in later years, including treatment of deferred tax and minority interests.
• have knowledge of regulation and have knowledge and skills about the accounting treatment of mergers and demergers.

The student must have knowledge of and be able to reflect on:

• the principles underlying the use of the equity method when valuing investments that give significant or decisive influence over another company.
• the principles on which the consolidated accounts are based, also for those cases where there are minority interests.
• how the treatment of tax in the company accounts influences deferred tax in the group accounts, and how deferred tax arises specifically in a group context.

Entry requirements

BØA117 "Financial accounting with analysis" or equivalent course

Teaching methods

Lectures, assignment seminars and compulsory submission

Compulsory learning activities

One work requirement must be approved before the exam can be taken. An unapproved work requirement gives the right to a new attempt. Approved work requirement is valid in the exam semester and 3 subsequent semesters.

Assessment

Written school exam, 4 hours. The exam can be held on a digital exam system.

The time and place for the exam will be announced on Studentweb. Grade scale A-F, where F corresponds to fail.

Examination support material

Auditors' Handbook, the Accounting Act in special print and calculator.

All calculator models are allowed, with the following exceptions:

- the calculator must not be able to receive/send

- the calculator must not be able to process symbolic mathematical expressions

- the calculator cannot be connected to the mains

- the calculator must not make noise

-excel spreadsheet

More about examination support material

Course reductions

• ØBR104 - Rekneskap fordjuping - Reduction: 5 studypoints