CONSOLIDATED FINANCIAL REPORTING

Single discipline educational activity

Course Sheet

Course code:

EGBC15

Academic Year of enrolment:

2017

Year of supply:

2018/2019

Type of Course:

Characterising

Degree:

Course of 2nd Cycle Degree in MANAGEMENT AND ECONOMICS

Disciplinary Sector:

Business Administration

Language:

English

Location:

PESCARA

Credits:

Programme Year:

Professor and Collaborators:

ZIRUOLO Andrea

Cycle:

First four months

Hours of classroom activity:

Individual study hours:

114

Prerequisites:

Although no prerequisites are required, it is recommended to know the basic concepts of the company economy (business economics, business organization and accounting and financial statements) and of quantitative methods and determinations of the company.

Objectives

With reference to the general objectives of the CdS, the teaching pursues significant aspects of the business and organizational dynamics of the companies that join together. The goal is to provide knowledge and techniques related to the preparation of the consolidated financial statements, included in the financial communication of the groups of companies. Through the study of the principles and techniques of drafting, the course wants to transmit the theoretical and applicative bases regarding the consolidated financial statements of unlisted groups, governed by Legislative Decree no. 127/1991 and subsequent amendments, and from the evolution of the European accounting directives.

At the end of the course the student must possess skills related to the general principles of drafting, knowledge regarding the content of individual documents that make up the consolidated financial statements and the problems of identifying the area and consolidation methods, and then dwell on the uniformities necessary for proceed with the consolidation of the data of a group, in terms of dates, financial statements, currency of presentation of the document and evaluation criteria of the items. The objective is to contribute to the training of a professional figure in charge of accounting and management of operational problems related to the application and analysis of the consolidation principles in concrete business realities, both as an internal profile and as a consultant.
At the end of the course the student will be able to:
KNOWLEDGE AND UNDERSTANDING CAPACITY
- analyze the processes of homogenisation of the balance sheet values;
- apply the general principles according to the logic of the consolidated financial statements;
- includes the accounting policies of the consolidated financial statements and applies the general drafting principles;
- draw up the consolidated balance sheet, the consolidated income statement, the consolidated cash flow statement, the consolidated explanatory note and
all documents required and recommended by the national accounting standard OIC 17;
- recognize the area and methods of consolidation;
- identifies the distinctive characteristics of the corporate groups, the relationships of dependence between companies, the types of participation;
- reads a corporate group structure;
- places the investments in the financial statements for the year;
- distinguishes the cases of exemption from the obligation to draw up the consolidated financial statements;
- determines the area and typical consolidation operations by identifying the integral method, the equity method and the proportional method;
- prepares the consolidated financial statements according to national and international accounting standards.

JUDGMENT AUTONOMY:
- read and interpret the consolidated financial statements by examining the performance of any economic reality organized as a corporate group.
- evaluates the investments held with the adjusted cost method;
- critically interprets and analyzes the opportunities and constraints of business combinations;
- It distinguishes the types of control and the dynamics relating to groups and business combinations;
- Identify and distinguish the management and coordination activity, the methods of establishment, the advantages and disadvantages of the group structure;
- reads and interprets the consolidated financial statements according to national and international principles;

COMMUNICATION SKILLS:
It expresses in an oral form analytical and synthesis considerations on the fundamental aspects of the discipline and carries out interdisciplinary links.

Contents

General drafting principles;
Business groups: characteristics, origins and types;
Financial communication in the presence of controlling interests: the information limits of the financial statements;
The consolidated financial statements:
- The discipline of the consolidated financial statements;
- Drafting obligations;
- The cases of exemption from the obligation to draft;
- The consolidated balance sheet;
- Consolidated income statement;
- Consolidated cash flow statement;
- The consolidated explanatory note;
The area and consolidation methods:
- full consolidation, elimination of investments and subsequent consolidation of the income statement;
- the elimination of intragroup transactions;
- the equity method and proportional consolidation;
Preliminary aspects for the preparation of the consolidated financial statements:
- Consolidation from the date of acquisition of control;
- Consolidation from a date close to the date of acquisition of control;
- Consolidation of the entire financial year for a shareholding acquired in the first months of the year;
Operational insights.

Extended Syllabus

1) Business Groups: Characteristics, origins, Types

2) Financial disclosure in the presence of controlling interests and the information limits of the financial statements

3) Consolidated Financial Statements: drafting obligations, exemption cases, general principles and documents

4) The area and consolidation methods

5) The Process of Formation of Consolidated Financial Statements: required uniformities, work phases and consolidation operations

6) Property theory: the elimination of investments at the time of the first consolidation and the subsequent consolidation of the income statement

7) Integral Consolidation in the financial years following the first one

8) The equity method and proportional consolidation

Recommended Bibliography

. PISONI, D. BUSSO, F. RIZZATO, Consolidated Financial Statements, Italian GAAP Principles and Operational Cases, Third Edition, updated with the changes introduced by Legislative Decree 139/2015 and the new OIC 17, Giuffrè Editore, Milan, 2017 ;
Handouts provided in class.

Methods of Provision

Conventional

Teaching Methods

The course includes 40 hours of lessons divided into 3 weekly lessons of 2 hours.
The course will be organized in modules whose lessons will focus mainly on the use of the following teaching methods: lectures, exercises, analysis of case studies. The exercises will be carried out both in the classroom and at a distance through the e-learning platform. Frequency is strongly recommended.

Evaluation methods

Verification of learning:

The assessment of students' level of learning will be carried out with the use of a written test and a subsequent oral examination. The written test is divided into exercises designed to verify the practical application of these concepts. This test has a duration of 2 hours. It represents 70% of the overall evaluation (expressed in thirtieths) articulated in relation to the training objectives to be evaluated.
The oral exam (30% of the overall assessment) is aimed at probing in the learner on the one hand communication skills, mastery of the specific technical language of the discipline dealt with and clarity of exposition, on the other the ability to interpret and analyze accounting operations and summarized reconciliation in the financial statements.
The examination methods are the same:
- for attending students it is possible to take two intermediate written tests;
- for non-attending students there is a single written exam integrated with the oral exam.

Contacts/More Information

ERASMUS students are invited to contact the teacher for their program. All attending and non-attending students can access all the information on the course through the E-Learning platform

Università degli Studi
"G. d'Annunzio"

Chieti - Pescara

Aree