27330 - Mergers and Adquisitions Accounting
27330 - Mergers and Adquisitions Accounting
Faculty / School:
109 - Facultad de Economía y Empresa
228 - Facultad de Empresa y Gestión Pública
301 - Facultad de Ciencias Sociales y Humanas
448 - Degree in Business Administration and Management
454 - Degree in Business Administration and Management
458 - Degree in Business Administration and Management
1.1. Aims of the course
The course and expected results correspond to the following approaches and general objectives:
- To provide the basic knowledge about the different types of business combinations and their accounting processes
- To examine the main accounting techniques of business combinations
- To determine the impact of the different types of business combinations on the financial information.
1.2. Context and importance of this course in the degree
“Mergers and Acquisitions Accounting” is a compulsory course of 6 ECTS that is taught in the first semester of the fourth year of the Degree in Business Administration. It is part of the accounting and finance module of the Degree. At this point in the degree, the students have completed several accounting courses, where they have learned about the elaboration, disclosure and analysis of companies’ financial information as the basis for decision-making.
On many occasions, business organization requires making different types of business combinations to adjust the size or activities of the companies and/or their governing structures. Mergers, acquisitions and other forms of business combinations imply complex processes of accounting and of elaboration of the required financial information. After passing this course, the students will be able to carry out the accounting of a business combination as well as to elaborate and interpret the resulting financial information
1.3. Recommendations to take this course
This is a mandatory course that is based on the knowledge acquired in various accounting courses (Financial Accounting I and II, Financial Statements, and Financial Statements Analysis) of previous years of the degree.
The Online Teaching Platform (ADD- https://moodle2.unizar.es) of the University of Zaragoza will be used to upload the materials and activities of the course. There you will find materials, laws, cases and other scheduled activities. The student must be aware of the updates on the ADD.
To be able to achieve the expected learning objectives, the student must attend the theoretical and practical lessons and participate in both these types of classes. Continuous work and carrying out the programmed activities are recommended during the course in order to facilitate its understanding.
After completing the course, the student will be competent in the following skills:
E1. To lead, manage and administer companies and other types of organizations
E2. To understand the functioning of any area of a company or organization and to perform any managerial function.
E3. To evaluate a situation and its possible evolution for a company or organization, to make decisions and to capture the relevant knowledge.
E4. To elaborate global management projects for companies and organizations
E5. To elaborate consultancy reports about specific situations of markets, sectors, organizations, companies and/or functional areas.
E6. To understand and apply professional criteria and scientific rigour to economic and managerial problem solving.
In addition, the students will achieve the following cross-sectional competences
T1a. - Ability to solve problems
T1d. - Ability to analyze and summarize information from different sources
T1e.- Ability to make decisions
T2a.- Ethical commitment to work
T2b.- Capacity for teamwork
2.2. Learning goals
On completing the course, the student will have achieved the following outcomes:
- To know and understand the accounting concepts related to corporate business, in particular, the different forms of business combinations.
- To know and understand the national and international regulations for business combinations.
- To understand the process of elaboration of financial information related to business combinations.
- To be able to use the methodologies and tools to prepare the financial information of business combinations.
2.3. Importance of learning goals
The learning outcomes of this course are relevant for achieving the expected learning objectives of Business Administration and Management and they will also be important for the students’ professional careers.
3. Assessment (1st and 2nd call)
3.1. Assessment tasks (description of tasks, marking system and assessment criteria)
The student will prove that he/she has achieved the expected learning outcomes by means of the following assessment tasks
For the first call, there are two assessment systems. One assessment system based on a continuous evaluation process and a global system that only consist of a global exam. This is consistent with the "Reglamento de normas de evaluación del aprendizaje -Acuerdo de 22 de diciembre de 2010 del Consejo de Gobierno de la Universidad de Zaragoza" (Learning assessment rules - Agreement of 22nd of December of 2010 of the Governing Body of the University of Zaragoza).
The continuous evaluation model is only valid for the first call, the second call will consist only of a global exam.
A) CONTINUOUS EVALUATION MODEL
It requires two written exams about the topics of the syllabus. These exams will have theoretical and practical content, with the same terms as those indicated for the global exam. The exams will take place during the teaching period, one during the course and the second right after finishing the classes. Additionally, with the objective to monitor the students additional exercises or activities will be done during the practical classes, they will be also taken into account for the continuous evaluation system.
The first exam, will cover chapters 1, 2 and 3 and the second chapters 4 and 5. The weight will be 50% the first exam, 40% the second and 10% the additional activities.
These activities will be assessed considering the continuous work of the student and the learning achievements regarding the objectives of this course. In all the activities, the adequacy and coherence of the answers will be considered.
Students should get a minimum mark equal to or greater than 5 out of 10 to pass the course, if they do not pass or they want to improve the mark, they can do the global exam.
B) GLOBAL SYSTEM: WRITTEN EXAM
The global written exams will have two parts:
A theoretical test (1/3 of the final grade) and a practical test (2/3 of the final grade).
The theoretical part will consist of several questions to assess the level of achievement of the learning objectives indicated above.
The practical part will consist on solving one or more practical cases to measure the level of achievement of the learning objectives.
The exam will be assessed considering the rigour of the answers, appropriate, clean and organized reasoning, the adequate use of the terminology, and the accuracy in the practical exercises.
Students should get a minimum mark equal to or greater than 5 out of 10.
The exams are expected to be carried out face-to-face, but in light of Covid-19 restrictions, they may be done online. During online exams, the students may be recorded. Students can check their rights at:
4. Methodology, learning tasks, syllabus and resources
4.1. Methodological overview
The methodology followed in this course is oriented towards the achievement of the learning objectives. A wide range of teaching and learning tasks are implemented, such as theory sessions, practice sessions and tutorials.
Teaching is expected to be done face-to-face, but health conditions may require on-line and/or blended teaching (moodle, google meet and similar technologies will be used for on-line and blended teaching).
4.2. Learning tasks
This course is organized as follows:
- Theory sessions. They include the preparation of presentations of individual and/or group tasks. They are key to understanding the basic concepts of a Mergers and Acquisitions Accounting course. The professor will use materials that will be uploaded on Moodle.
- Practice sessions. Practical exercises, previously studied by the students, will be solved. They will be oriented to solving exercises and cases that will help the student to better understand the theory of the course. The students are expected to participate actively. They must solve the exercises and cases by themselves.
- Tutorials. the professors will inform the students of their office hours for tutorials.
- Autonomous work and study.
This course will address the following topics:
Topic 1: Business concentrations and business combinations
1.1 The origin of business concentrations
1.2 Business combinations
1.3 The acquisition method
Topic 2: Mergers: General aspects
2.1 Concept and types of mergers
2.2 Legal aspects of a merger
2.3 Economic aspects of a merger
2.4 Accounting of a merger process
Topic 3: Business divisions
3.1 Types of divisions
3.2 Legal aspects of a division
3.3 Economic aspects of a division
3.4 Accounting of a division process
3.5 Segregation operations
Topic 4: Business Groups
4.1 Group concept and consolidation perimeter
4.2 Company groups in the context of business combinations
4.3 National and international standards of consolidation
4.4 Elaboration of the consolidated financial information
Topic 5: Consolidation methods
5.1 Consolidation methods: introduction
5.2 Stages of the consolidation process
5.3 Consolidation and merger: differences and similarities.
5.4 Consolidated Financial Statements