Course Overview

Consolidated financial statements are an essential part of the accounting process for group companies. This key information provides perspective on the entire business, something that is often lost when looking only at figures for the parent or a single subsidiary

The use of consolidated financial statements is key today for any organisation operating within a group, no matter what stage the business is at. By opting to use consolidation software it’s possible to reduce the complexity of the process of preparing these statements and optimize the way that they are used as a result.

In Consolidated Financial Statements, the Financials of the parent company and its subsidiaries will be consolidated as if they are a single economic entity. Preparation of Consolidated Financial Statements involves highly technical and complicated procedures –

However, worry not  – Financial Statements Consolidation and Investment Accounting Training course will take you step by step as to how consolidated financial statements are prepared.

This Zoe training course will provide you with a detailed understanding and comprehensive overview of the Financial Statements Consolidation and Investment Accounting Training Course and help you make sound decisions for your Organisation.

Course Objectives

By the end of the program, participants will be able to:

• Recognize the process of consolidating financial statements.
• Identify business combinations and their related transactions.
• Apply the acquisition method for business combinations.
• Account for goodwill and non-controlling interests.
• Identify different types of financial instruments and accounting methods for each.
• Account for transactions according to fair value method, equity method and amortized cost.
• Recognize differences and similarities between International Financial Reporting Standards (IFRS) and the US Generally Accepted Accounting Principles

Who Should Attend?

• Employees working in the accounting/finance department
• Students/employees want to expand their accounting/finance knowledge

Course Outline

MODULE 1

Financial Instruments

• Categories of Investments
• Presentation of Financial Instruments
• Distinguishing Liabilities from Equity
• Classification of Instruments:
• Held-to-Maturity Debt Securities (HTM)
• Trading Securities
• Available-for-Sale Securities (AFS)
• Fair Value through Profit and Loss Option
• Determining Fair Value
• Initial and Subsequent Measurement
• Reclassification and Transfer between Categories
• Constraints on Reclassifications
• Derecognition of Financial Instruments
• Impairment of Financial Assets Carried at Amortized Cost
• Impairment of Financial Assets Carried at Fair Value
• Impairment of Financial Assets Carried at Cost
• Accounting for Sales of Financial Instruments
• The Recent Accounting Updates According to IFRS 9

MODULE 2

Investments in Associates

• Accounting Based on the Equity Method
• Situations when Cost Method is Applicable
• Differences in Fiscal Year
• Intercompany Transactions between Investor and Investee
• Accounting for a Partial Sale or Additional Purchase of Equity Investment
• Change in Level of Ownership or Degree of Influence
• Accounting for Impairment

Module 3

Transactions Accounted for as Business Combinations

• Defining a Qualifying Business
• Structures of Business Combinations
• IFRS and US GAAP Consideration

Module 4

Accounting for Business Combinations

• Applying the Acquisition Method
• Identifying the Acquirer
• Recognizing and Measuring the Identifiable Tangible and Intangible Assets Acquiredand Liabilities Assumed
• Classifying or Designating Identifiable Assets Acquired and Liabilities Assumed
• Recognizing and Measuring any Noncontrolling Interest
• Measuring the Consideration Transferred
• Recognizing and Measuring Goodwill or Gain from a Bargain Purchase
• Acquisition Related Costs
• Accounting for Gain on Bargain Purchase Option

Module 5

Consolidated Financial Statements

• Defining “Control”
• Changes in Ownership Interest without Loss of Control
• Changes in Ownership Interest Resulting in Loss of Control
• Consolidation Procedures
• Intercompany Transactions and Balances

Module 6

Post Combination Measurement and Accounting

• Reacquired Rights
• Contingent Liabilities
• Indemnification Assets
• Contingent Consideration

Module 7

Goodwill and Gain on Bargain Purchase Options

• Measurement of Goodwill
• Impairment of Goodwill