Financial Statement Consolidation

Financial Statement Consolidation

OBJECTIVES

• Learn how to determine when an investment object has to be included in a group of companies and what requirements it must meet to be included in the consolidated financial statements
• To know the different forms of business merging, how to take into account investments and their reporting techniques
• To understand the accounting features for non-controlling interests and goodwill
• Methodologically correctly implement the consolidation process
• Be able to correctly exclude intra-group transactions inside / between accounting periods
• To formulate a list of requirements for the provided information, for the group’s companies inside the perimeter of the consolidation.

WHO SHOULD ATTEND?

Executive level managers, accountants, managers, financial analysts and other experts of holding group who plan to use IFRS/US GAAP in their practice

COURSE OUTLINE

► Regulating document

► Introduction

► Business combination. Major definitions

► Scope of consolidation

► Control Major signs of control

► Accounting requirements for preparing consolidated

financial statements

► Non-controlling interest (NCI). Methods for evaluation

of NCI and recognition NCI in financial statements

► Good will and negative good will recognition

► Basic consolidation technique

► Acquisition date consolidation

► Reporting date consolidation

► Eliminations of operations within the group

► Elimination of turnover within the group

► Sales of inventory within the group

► Approaches to eliminating unrealized gain/losses

► Sale of fixed assets within the group.

► The costs of business combinations

► Consideration transferred

► Acquisition related costs

► Equity instruments issued by the acquirer

► Deferred payment

► Contingent consideration

► Recognizing and measuring the identifiable assets acquired

and the liabilities assumed in business combination

► Intangible assets of the acquire

► Contingent liabilities

► Accounting for revaluation of assets of the acquired

company

► Measurement period. Further value corrections of

identifying assets and liabilities after the end of

measurement

► Exceptions to the recognition and measurement principles

of the acquirer’s identifying assets and liabilities

► Disclosure requirements

► Complex practical task: preparation of consolidated

financial statements