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
The aim of the course is to expand knowledge, skills and competencies in the area of consolidated financial statements of business entities prepared in accordance with IFRSs adopted by the European Union. As part of the education, students will learn the consolidation of intragroup transactions. The students will study other specific consolidation issues of subsidiaries. Students will also learn about the recognising of associates and joint ventures in the consolidated financial statements. At the end of the course, students summarize the requirements for disclosure of information in the 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).
skill – 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.
competence – 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
Intragroup transactions and their consequences. Consolidation procedures applied in the consolidation of intragroup transactions in accordance with IFRS 10 Consolidated Financial Statements. Consolidation of intragroup receivables and liabilities (first and subsequent consolidation). Consolidation of the intermediate result (unrealized profit or unrealized loss) in the sale of non-current assets and inventories in the group (first and subsequent). Consolidation of intragroup expenses and revenues. Dividend consolidation. Specific consolidation issues (business combination achieved in the stages, changes of ownership of parent (increasing and decreasing without loss of control), loss of control (deconsolidation). Definition of joint arrangements and joint control according to IFRS 11 Joint arrangements. Accounting for joint arrangements according to IFRS 11. Definition of significant influence according to IAS 28 Investments in associates and joint ventures. The nature and application of the equity method under IAS 28. Disclosure of interests in other entities under IFRS 12 Disclosure of interests in other entities.
Support literature
1. HORNICKÁ, R. : Konsolidovaná účtovná závierka II. Praktikum. Bratislava: Vydavateľstvo Ekonóm, 2018.
2. Zákon č. 431/2002 Z. z. o účtovníctve v znení neskorších predpisov.
3. Smernica Európskeho parlamentu a Rady 2013/34/EÚ z 26. júna 2013 o ročných účtovných závierkach, konsolidovaných účtovných závierkach a súvisiacich správach určitých druhov podnikov, ktorou sa mení smernica Európskeho parlamentu a Rady 2006/43/ES a zrušujú smernice Rady 78/660/EHS a 83/349/EHS v znení neskorších úprav.
4. Nariadenie komisie (ES) č. 1126/2008 z 3. novembra 2008, ktorým sa v súlade s nariadením Európskeho parlamentu a Rady (ES) č. 1606/2002 prijímajú určité medzinárodné účtovné štandardy – konsolidované znenie k 1. 1. 2021.
Syllabus
1. Intragroup transactions and their consequences. Consolidation procedures applied in the consolidation intragroup transactions (as part of the full consolidation method) in accordance to IFRS 10. Preparation of data and documents for the consolidation of intragroup transactions. 2. Consolidation of intragroup receivables and liabilities (first and subsequent consolidation). 3. Consolidation of the intermediate result (unrealized profit or unrealized loss) in the sale of non-current assets in the group (first and subsequent consolidation). 4. Consolidation of the intermediate result (unrealized profit or unrealized loss) in the sale of inventory in the group (first and subsequent consolidation). 5. Consolidation of intragroup expenses and revenues. 6. Consolidation of dividend. 7. Business combinations achieved in the stages. 8. Increasing ownership of parent in the subsidiary. 9. Decreasing ownership of parent in the subsidiary without loss of control. 10. Loss of control of parent in the subsidiary – deconsolidation. Influence loss of control of parent in the subsidiary on the individual financial statements (disposal of investment in the subsidiary) and on the consolidated financial statements (disposal of subsidiary). 11. Definition of joint arrangements and joint control according to IFRS 11. Accounting for joint arrangements (joint operation and joint venture) according to IFRS 11. Definition of significant influence according to IAS 28. The nature and application of the equity method according to IAS 28 12. Preparation of consolidated statement of financial position and consolidated statement profit or loss and other comprehensive income for group with associate or joint venture. 13. Disclosure information in the consolidated financial statements. Disclosure information about interests in other entities according to IFRS 12.
Requirements to complete the course
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
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: 10.02.2023
Date of the latest change: 21.05.2022