IFRS: Consolidated Financial Statements I

Syllabus

1. Nature, significance and purpose of consolidated financial statements. Theoretical approaches to the interpretation of consolidated financial statements. Historical development of consolidated financial statements. 2. Obligation to present consolidated financial statements according to Act no. 431/2002 Coll. on Accounting, as amended (further referred to as the “Accounting Act”). Exemptions from the obligation to present consolidated financial statements in accordance to the Accounting Act. Other obligations related to consolidated financial statements according to the Accounting Act. 3. Definition of international regulation for consolidated financial statements. EU directives for consolidated financial statements. IFRSs for consolidated financial statements. Relationship between EU directives and IFRSs. The impact of international regulation on the national legal regulation of consolidated financial statements in the conditions of the Slovak Republic as a member state of the European Union. 4. Process of preparation and presentation of consolidated financial statements. Internal regulation for consolidation in a group. General principles for the presentation of consolidated financial statements according to IFRSs. Structure and content of consolidated financial statements according to IFRSs. Peculiarities of the structure and content of the consolidated financial statements in comparison with the individual financial statements. 5. Identifying of business combinations and ways of rise of the business combinations. Transactions excluded from scope of IFRS 3. Connection of business combinations and consolidated financial statements. Nature of the acquisition method for business combinations and its application in the consolidated financial statements. 6. Identifying of acquirer according to IFRS 3. Transferred consideration by the acquirer at the acquisition date (identification and measurement). Determining the acquisition date according to IFRS 3. Recognising and measuring the identifiable assets acquired, the liabilities assumed at the acquisition date according IFRS 3. Recognising and measuring the non-controlling interests at the acquisition date according to IFRS 3. Dealing with previously held equity interest at the date acquisition according IFRS 3. 7. Recognising and measuring goodwill or gain from a bargain purchase according IFRS 3. Recognising and measuring of individual components of business combination (transferred consideration, acquired assets and assumed liabilities, goodwill, non-controlling interests) after acquisition date. Measurement period according to IFRS 3. Disclosure information about business combination according IFRS 3. 8. Impairment testing of goodwill in accordance with IAS 36. Identifying the cash-generating unit to which an asset belongs. Recoverable amount and carrying amount of cash-generating unit. Allocation of goodwill to cash-generating unit or to group of cash-generating units. Impairment loss for a goodwill. 9. Single control model according to IFRS 10 in comparison with Slovak legislation. Consolidation procedures for subsidiaries (full method consolidation) in accordance to IFRS 10. Presentation of separate financial statements in accordance to IAS 27. 10. Preparation of the consolidated statement of financial position for the group (parent - subsidiary) with goodwill or gain from a bargain purchase. Dealing with retained earnings and other components of the subsidiary's equity at the acquisition date and after the acquisition date. Identification, measurement and presentation of non-controlling interests at the acquisition date (proportional or at fair value) and subsequent recognition of non-controlling interests after the acquisition date depending on the chosen method of their measurement at the acquisition date. 11. Preparation of the consolidated statement profit and loss and other components of the comprehensive income for the group (parent – subsidiary) with a non-controlling interest with the acquisition date during the accounting period. 12. Recognition of fair value adjustments, including an explanation of their effect on the amount of goodwill recognized (or on gain from bargain purchase), on non-depreciated and depreciated non-current assets, inventories, financial liabilities, assets and liabilities that are not included in the statement of financial position of the subsidiary, including contingent assets and contingent liabilities. 13. Identifying, measuring and recognizing an impairment loss of goodwill. The effect of the measurement of non-controlling interests on the recognition of an impairment loss of goodwill.