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Description

Mergers and Partial Business Transfers: Valuation, Accounting and Financial Statement Presentation

Handle a merger or a partial business transfer from the transfer agreement through to the published financial statements

  • 2 days — 14 h
  • In-person or virtual
  • Intermediate
  • Up to 6 participants

A merger or a partial business transfer involves decisions with lasting consequences for the accounts: carrying amount or fair value of the assets transferred, exchange ratio adopted, effective date and treatment of the resulting merger difference. An error at this stage distorts equity and the readability of the consolidated financial statements. Third parties will later ask for explanations that are difficult to reconstruct.

This 14-hour programme addresses the transaction from a financial and accounting perspective: preparation and exchange ratio, determination of transfer values, entries in the books of the transferring entity and of the receiving entity, then the consequences for the accounts and for published information. Negotiation and tax aspects are covered in a separate module.

Learning objectives

  • Distinguish mergers, demergers and partial business transfers and their accounting consequences
  • Determine the direction of the transaction and the transfer value applicable to the case at hand
  • Calculate the exchange ratio and the number of shares to be issued
  • Record the entries in the books of the transferring entity and of the receiving entity
  • Identify merger surplus and merger deficit and monitor the technical merger difference
  • Measure the effect of the transaction on equity and on the consolidated financial statements

What makes this programme different

A complete merger is worked through from the exchange ratio to the entries and the notes to the accounts
The technical merger difference is allocated and then monitored over subsequent periods on a continuous case study
Common control and separate control situations are compared on the same file

Programme

1Transaction framework and preparation

Qualify before you account

  • Merger by absorption, merger by formation of a new entity, demerger and partial business transfer
  • Direction of the transaction and control situation between the participating entities
  • Legal effective date, accounting effective date and retrospective effect
  • Valuation of the entities and determination of the exchange ratio
  • Content of the transfer agreement and the role of independent experts and auditors

2Transfer values, merger surplus and merger deficit

The choice that shapes the accounts

  • Conditions for applying carrying amount or fair value to the assets transferred
  • Treatment of the assets and liabilities transferred under the agreement
  • Determination of merger surplus and merger deficit
  • Distinction between the technical merger difference and a genuine deficit
  • Allocation of the technical merger difference to the underlying assets

3Entries in the transferring and receiving entities

Recording the transaction in the accounts

  • Entries for the transfer of net assets in the books of the transferring entity
  • Share capital increase, merger premium and transaction costs charged
  • Recognition of the assets and liabilities taken over by the receiving entity
  • Cancellation of shares held in mergers between related entities
  • Treatment of reciprocal transactions and intercompany current accounts

4Effects on the accounts and disclosures

Explaining what the transaction changed

  • Movements in equity and reading the balance sheet after the transaction
  • Comparability of reporting periods and presentation adjustments
  • Disclosures expected in the notes to the annual financial statements
  • Impact on the consolidated financial statements and on goodwill
  • Subsequent monitoring of the technical merger difference and impairment testing

Who is it for

Accounting managers and consolidation specialists, finance directors, professionals in accounting and advisory firms, and auditors involved in restructuring transactions.

Prerequisites

Sound command of closing entries and of reading annual financial statements.

Dates & locations

36 scheduled dates between November 2026 and December 2027. Seats are confirmed in the order enquiries are received.

November 2026

December 2026

January 2027

February 2027

March 2027

April 2027

May 2027

June 2027

September 2027

October 2027

November 2027

December 2027

None of these dates suit you? We open additional sessions on request, and any programme can be run privately for your team.

Practical details

Before the programme
Online positioning questionnaire. Your development objectives are shared with the trainer, who tailors the practical case studies to your context.
Teaching methods
Theoretical input, workshops and practical case studies. Digital course materials and method sheets provided.
Assessment
Multiple-choice tests and role-play exercises. Assessment of learning at the start and end of the programme, with immediate and 60-day follow-up evaluations.
After the programme
One year of access to the e-learning platform. Self-assessment of the skills acquired and a 30-day follow-up session with your trainer.
How to register
Registration online or on the basis of a quotation.
Lead time
11 working days after confirmation of registration.
Accessibility
Accessible to people of determination. Contact our accessibility coordinator to design a suitable solution: contact@mpf-academy.ae
Start dates
Rolling intake: in addition to the scheduled sessions, this programme can start on request.