IFRSs: Consolidated financial statements II
- Credits: 4
- Ending: Examination
- Range: 0P + 2C
- Semester: summer
- Year: 2
- Faculty of Economic Informatics
Teachers
Included in study programs
Teaching results
Learning Outcome:
The objective of the course is to expand knowledge, skills, and competencies in the field of consolidated financial statements of business entities prepared in accordance with IFRS as adopted by the European Union. Within the educational framework, students will become familiar with further issues concerning consolidated financial statements. Consolidation procedures for subsidiaries will be supplemented by the consolidation of intra-group transactions. After covering all consolidation procedures for including subsidiaries in the consolidated financial statements, students will focus on specific problems of subsidiary consolidation and on the cessation of consolidation. Students will also acquire knowledge on including associates and joint ventures in the consolidated financial statements. At the end of the course, students will summarize the requirements for the disclosure of information in consolidated financial statements.
By completing the course, students will gain:
- knowledge - acquiring knowledge about the consolidation of intragroup transactions in a group with an impact on the elimination of intragroup receivables and liabilities, elimination of intermediate results (unrealized profit and loss) and elimination of intragroup expenses and revenues, expanding knowledge about solution of specific consolidation issues of subsidiaries (business combination achieved in the stages, changes in ownership parent in the group, loss of control - deconsolidation) and addition of knowledge regarding the recognising of associates and joint ventures in the consolidated financial statements (equity method).
- skills – to apply consolidation procedures aimed at eliminating the effects of intragroup transactions within in two following accounting periods (first and subsequent consolidation), to solve specific consolidation issues of subsidiaries, prepare a consolidated statement of financial position and consolidated statement of profit or loss and other comprehensive income after all consolidation procedures of subsidiaries (all components of the full consolidation method), to recognizes of the associates or joint ventures in the consolidated financial statements (equity method) in two following accounting periods, to determine and to obtain the necessary information for disclosure in the consolidated financial statements.
- competences – to ensure the preparation of necessary data and documents for the consolidation of intragroup transactions, explain and interpret the results of consolidation of intragroup transactions, to propose solutions to specific consolidation issues of subsidiaries, to solve deconsolidation of subsidiaries, ensure the preparation of necessary data and documents for the application of equity method, to interpret requirements for disclosure in the consolidated financial statements, to present the consolidated financial statements as an information instrument for its users.
Indicative content
Intra-group transactions and their consequences. Consolidation procedures applied in the consolidation of intra-group transactions according to IFRS 10 Consolidated Financial Statements. Consolidation of intra-group receivables and payables (first and subsequent consolidation). Management of receivables and payables within the group. Consolidation of unrealized profit (first and subsequent) on the sale of non-current assets and inventories within the group. Consolidation of intra-group expenses and income. Consolidation of dividends. Impacts of intra-group transactions on entities within the group. Specific consolidation issues (business combination achieved in stages, change in the parent entity's ownership interest without loss of control, loss of control in a subsidiary – deconsolidation). Definition of joint arrangements and joint control according to IFRS 11 Joint Arrangements. Accounting treatment of joint arrangements according to IFRS 11. Definition of significant influence according to IAS 28 Investments in Associates and Joint Ventures. Essence and application of the equity method according to IAS 28 Investments in Associates and Joint Ventures. Disclosure of information in consolidated financial statements. Disclosure of interests in other entities according to IFRS 12 Disclosure of Interests in Other Entities.
Support literature
1. Act No. 431/2002 Coll. on Accounting, as amended.
2. Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013 on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings, amending Directive 2006/43/EC of the European Parliament and of the Council and repealing Council Directives 78/660/EEC and 83/349/EEC, as amended.
3. Commission Regulation (EU) 2023/1803 of 13 August 2023 adopting certain international accounting standards in accordance with Regulation (EC) No 1606/2002 of the European Parliament and of the Council, as amended.
Syllabus
1. Intra-group transactions and their consequences. Consolidation procedures applied in the consolidation of intra-group transactions (as part of the full consolidation method) according to IFRS 10. Preparation of documentation for the consolidation of intra-group transactions. 2. Consolidation of intra-group receivables and payables (first and subsequent consolidation). Payment transactions within a group of companies. Cash-pooling in a group of companies. 3. Consolidation of dividends. 4. Consolidation of unrealized profit/loss on the sale of non-current assets within the group (first and subsequent). 5. Consolidation of unrealized profit/loss on the sale of inventories within the group (first and subsequent). 6. Consolidation of intra-group expenses and income. Tax impacts of intra-group transactions on entities within the group (transfer pricing documentation, top-up tax). 7. Business combination achieved in stages. 8. Increase in the parent entity's ownership interest in a subsidiary without loss of control. 9. Decrease in the parent entity's ownership interest in a subsidiary without loss of control. 10. Loss of control by the parent entity in a subsidiary (deconsolidation). Expressing the impact of the loss of control in the individual financial statements of the parent entity and in the consolidated financial statements. 11. Continuous written test. Definition of joint arrangements and joint control according to IFRS 11 Joint Arrangements. Accounting treatment of joint forms of business according to IFRS 11. Definition of significant influence according to IAS 28 Investments in Associates and Joint Ventures. Essence and application of the equity method according to IAS 28. 12. Preparation of the consolidated balance sheet and consolidated statement of profit or loss and other comprehensive income for a group with an associate or a joint venture. 13. Disclosure of information in the consolidated financial statements. Requirements for the disclosure of interests in other entities according to IFRS.
Requirements to complete the course
Mid-term test (40% of the final exam evaluation). The maximum number of points for the mid-term test is 40 points. The maximum number of points for the final exam is 60 points. To successfully pass, it is required to achieve a minimum of 51% of the total points and at least 51% of the points from the final exam.
Student workload
26 hours of seminars
26 hours of preparation for the seminars
20 hours of preparation for the interim check test (40 % of the finally exam)
32 hours of preparation for the exam: of this 24 hours for the practical issues (30 % of the finally exam) and 30 hours for the theoretical issues (30 % of the finally exam).
Total study load (in hours): 104
Language whose command is required to complete the course
slovak
Date of approval: 04.03.2025
Date of the latest change: 25.01.2026