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IFRS Consolidation. Key aspects. 

This course is delievered in Polish and can also be organized as a closed session (closed formula) at individual request of your organization. If you are interested in this programme, please contact the course co-ordinator - Aleksandra Trych (aleksandra.trych@pl.ey.com).

  • For whom?
  • Objectives and advantages
  • Programme
  • Date and location
  • Tutors
  • Price
  • Contact
  • Educational points/units
  • Download

For whom? 

The course is designed for:

  • People preparing consolidated financial statements or group reporting packages which are input into such financial statements.
  • Chief accountants, financial controllers, finance directors responsible for the control and analysis of consolidated financial statements. 

Objectives and advantages

  • To enable the participants to gain both basic consolidation skills and to understand more complicated issues relating to complex consolidation.
  • To illustrate, with the use of numerical examples, the issues causing most difficulty in preparing consolidated accounts.
  • To update participants on business combinations and consolidations based on revised IFSRs 3 and 27.
  • To inform participants about recently issued standards: IFRS 10, IFRS 11, IFRS 12, which apply from 1 January 2013. 

Programme 

Fundamental consolidation issues 

  • Accounting for investments in individual company financial statements and how this is dealt with in consolidated financial statements
  • Definition of subsidiaries, associates, fellow subsidiaries, control, joint control, significant influence and other definitions relating to consolidated financial statements 
Consolidated statement of financial position and statement of comprehensive income 
  • Step by step discussion of the rules on consolidation of the statement of financial position
  • Goodwill and negative goodwill, goodwill impairment calculation
  • Measurement of assets and liabilities of a subsidiary at fair value at date of acquisition
  • Accounting for non-controlling interests
  • Consolidation adjustments relating to elimination of:
  • the investment and capital acquired
  • intercompany balances (trade, loans etc.)
  • unrealised profit in intercompany transactions relating to transfer of inventory and long-term assets (including the impact on depreciation)
  • dividends
  • Step by step discussion of the rules on consolidation of the statement of comprehensive income
  • Elimination of intercompany transactions (sales, cost of sales, dividends) and the impact of such adjustments on non-controlling interests 

Investments in associates 

  • Accounting for associates
  • Practical example of accounting for associates using the equity method in the statement of financial position and the statement of comprehensive income
  • Elimination of share of unrealised profits in transactions between a significant investor and an associate 

Consolidated statement of cash flows 

  • Discussion of issues relating to preparation of the consolidated statement of cash flows such as investments in associates, dividends paid to non-controlling interests and purchase or sale of a company during a year
  • Practical example of the preparation of a consolidated statement of cash flows using the indirect method based on amounts in the consolidated statement of financial position, statement of comprehensive income and notes to the accounts 

Business combinations 

  • Valuation of assets and liabilities of the subsidiary at fair value. Impact on the consolidated financial statements at the date of acquisition and adjustments required in the following periods
  • Identification of the purchase price and amounts to be excluded therefrom: settlement of existing relationships with the target, payment in shares, amounts treated as remuneration
  • Accounting for intangibles, contingent liabilities, indemnification assets, reacquired rights, contingent consideration
  • Reclassification of assets and liabilities at date of acquisition 

Consolidation of foreign subsidiaries 

  • Functional currency and presentation currencies
  • Criteria for determining functional currency
  • Accounting for foreign currency transactions at the transaction date, settlement date and at the end of the accounting period. Accounting for exchange rate differences
  • Retranslation of the financial results and the financial position of foreign subsidiaries
  • Exchange rates used to translate assets, liabilities, equity, revenues and costs
  • Accounting for exchange rate differences in consolidated financial statements: group share and non-controlling interest share
  • Elimination of balances and transactions with a foreign enterprise
  • Recalculation of goodwill 
Advanced techniques of consolidating financial statements 
  • Impact of step by step acquisitions on the calculation of goodwill
  • The impact of a full or partial disposal of a subsidiary: calculation of consolidated profit on sale
  • Accounting for a disposal which results in a decrease in the percentage ownership while at the same time retaining control or the remaining investment is an associate or a financial asset
  • Transactions with non-controlling shareholders 
Changes introduced by recently issued standards 
  • IFRS 10: Consolidated financial statements: new definition of control, practical examples relating to the exercise of control, requirement to continually reassess whether control exists
  • IFRS 11: Joint arrangements: classification as either joint venture or joint operation; accounting treatment, practical examples
  • IFSR 12: Disclosure of interests in other entities: objective and scope, required disclosures for subsidiaries, associates and joint arrangements 

Materials 

All participants will receive training materials including: 
  • A summary of the standards relating to consolidation
  • Questions and solutions
  • The materials are designed for use during the training and, what’s more important, as a helping tool for participants in their daily work. 

Date and location 

9-10 December, 2020, Online live  

Tutors

Magdalena Burzyńska, Senior Trainer 

Magdalena is a graduate of the Warsaw School of Economics in the faculties of Finance and Banking and International Economic and Political Relations. He is a member of ACCA. 
Prior to joining EY Academy of Business, she was employed as a financial controller at an international group in the engineering and construction sector. He has extensive experience in the field of financial management of international companies, preparation of financial statements in accordance with the International Financial Reporting Standards (IFRS) gained during 6 years of work in the financial departments of various companies. 
Price 2100.00 PLN (+ 23% VAT)

Contact 

Aleksandra Trych | tel. +48 505 171 636 | aleksandra.trych@pl.ey.com

Educational points/units 

Our training meets the conditions for self-education. 
Statutory auditors may undergo some compulsory professional development as part of self-education. During the 3-year settlement period, the number of self-study hours is at most 48 hours of self-study. (Ordinance of the Minister of Finance of November 21, 2014 on the mandatory professional development of statutory auditors). 
Self-education topics include: 
  • accountancy
  • financial audit
  • taxes
  • general economic knowledge - especially economic and financial law
  • IT issues
  • soft skills, the possession of which is necessary to perform the auditor's professional activities. 
Participation in stationary training includes the number of hours specified on the certificate. At EY Academy of Business 1 training day = 8 educational hours. 
CPD (Continuing Professional Development) - our trainings meet the requirements of international professional organizations (ACCA, IIA) regarding the further education of their members.  

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