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

Knowledge:

The student must:

• have in-depth knowledge of the general regulation of group accounts, and the principles underlying the preparation of group accounts at the time of acquisition and in later years, including treatment of deferred tax and minority interests.
• have the knowledge to reflect on the principles on which the group accounts are based, also for those cases where there are minority interests.
• have knowledge of and be able to reflect on how the treatment of tax in the company accounts influences deferred tax in the group accounts, and why and how deferred tax in the group arises.
• have knowledge of how assessments that form the basis for the price of shares when a group is formed or when a significant shareholding is purchased affect accounting treatment at the time of purchase and in later periods.
• have knowledge of regulation of the equity method in the company accounts and in the group accounts, and the principles underlying the use of the equity method when valuing investments that give significant or decisive influence over another company.
• have knowledge of how restructuring in the business world, such as fissions and mergers, can be carried out and what interaction there is between the Companies Act and the Accounting Act in this area.
• have knowledge of the accounting regulation of demergers and mergers and relevant provisions in the share legislation.

Skills:

The student must:

• have the skills to prepare group accounts at the time of acquisition and in later years, including treatment of deferred tax and minority interests.
• have the skills to be able to apply the equity method in a company account and in the group account
• have the skills to be able to apply the main principles for the accounting treatment of simple mergers and fissions
• be able to assess how restructuring in the business world, such as fissions and mergers, can be carried out and what interaction there is between the Companies Act and the Accounting Act in this area.

General competence:

The student:

• develops critical thinking skills

• develops problem-solving skills and written presentation skills

• develops analytical thinking skills

• develops skills to be able to analyze financial issues related to reorganizations in the business world

• demonstrates an understanding of how issues are affected by context

• develops the ability to make a critical analysis of the uncertainty in analyses

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. The work reqirement includes both calculation tasks and theory tasks.

The subject area covered by this cource is constantly developing on the regulatory side. Therefore, approved work requirement is valid for a limited period. The work requirement is valid in the exam semester and 3 subsequent semesters.

Assessment

Written individual 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

The Accounting Act in special print. The company law in special print. The taxlaw. collection,

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

More about examination support material

Course reductions

• ØBR104 - Rekneskap fordjuping - Reduction: 5 studypoints