ACCOUNTING FOR BUSINESS COMBINATIONS AND CONSOLIDATED FINANCIAL STATEMENTS - 1
- Academic year
- 2022/2023 Syllabus of previous years
- Official course title
- BILANCIO DEI GRUPPI E DELLE OPERAZIONI STRAORDINARIE - 1
- Course code
- EM4001 (AF:386363 AR:210876)
- On campus classes
- ECTS credits
- 6 out of 12 of ACCOUNTING FOR BUSINESS COMBINATIONS AND CONSOLIDATED FINANCIAL STATEMENTS
- Surnames A-K
- Degree level
- Master's Degree Programme (DM270)
- Educational sector code
- 1st Term
- Course year
- Go to Moodle page
Contribution of the course to the overall degree programme goals
- deepen the financial information of a group of entities;
- address the issues related to the definition of group and control, as well as the preparation of consolidated financial statements, in a national and international perspective;
- examine the national law (D. Lgs 127/91 e OIC 17) and international financial reporting standards (IFRS) with reference to the accounting representation and communication of the activities of business groups.
The second part of the course (Group accounting and enterprise extraordinary operations -2) presents the accounting issues arising from other business combinations that allow to carry out the strategies of acquisition and reorganization of the business.
Expected learning outcomes
As students of the Master's Degree Programme in Accounting and Finance have to acquire knowledge and understanding in business administration with particular reference to the accounting representation, the financial statements and the other tools to support decisions, through this course the students can complete their previous training in the area of financial statements of one single entity. Notably, at the end of this course it is expected that students know and are able to understand:
- the concept of group of entities;
- the alternative theories of consolidation that underpinning the national and international rules;
- the definition of consolidation area;
- the composition and format of consolidated financial statements;
- the accounting adjustments due for the preparation of consolidated financial statements.
2 APPLYING KNOWLEDGE AND UNDERSTANDING
Since students of the Master's Degree Programme in Accounting and Finance must be able to get expert in addressing issues related to accounting for business combinations, at the end of this course the student will be able to:
- carry out accounting adjustments in order to consolidate the interests in other entities and recognise consolidation differences;
- carry out accounting adjustments of intra-group transactions;
- prepare consolidated financial statements starting from financial statements of the parent company and subsidiaries.
Moreover, the following topics are considered already known:
- the composition of financial statements and the structure of the balance sheet and income statement prepared in compliance with the Italian civil law and with IFRS, that have been developed in the Financial Statement Analysis course;
- measurement bases of the main assets and liabilities according to the Italian civil law, national accounting standards (OIC) and international financial reporting standards (IFRS), as well as the effects in terms of deferred tax, that have been analysed in the Financial Accounting course.
Alternative theories of consolidation and national and international requirements for the preparation of consolidated financial statements.
Definition of consolidation area in compliance with Italian civil law and IFRS.
Composition and contents of consolidated financial statements according to Italian civil law and IFRS.
Measurement of investments in other entities recognised in separate and consolidated financial statements complying with Italian civil law and IFRS.
Methods to estimate the value of companies under business combinations.
Preliminary phases of the consolidation process.
- accounting treatment of interests in other entities and recognition of consolidation differences;
- accounting adjustment of intra-group transactions.
Proportional consolidation for investments in joint ventures.
• Paragraphs from 4.4 to 4.7
• Examples 6.12; 6.13; 6.14
• Paragraphs 8.4.2 - 8.4.3
• Chapter 10
• Paragraphs 11.5
• Chapter 12
Recommended supplementary readings:
Pisoni P., Busso D. Rizzato F., Il bilancio consolidato. Principi italian GAAP e casi operativi, III ed. Giuffrè, Milano, 2017.
Pisoni P., Biancone, P.P., Busso D., Cisi, M., Il bilancio consolidato. IFRS, II ed. Giuffrè, Milano, 2015.
Prencipe A., Tettamanzi P., Mancini C., Bilancio consolidato, V ed., Egea, Milano, 2021.
Teodori C., Il bilancio consolidato. Caratteristiche, costruzione e interpretazione, III ed., Giuffrè Francis Lefebvre, Milano, 2020.
Generally, the exam consists of one open-ended theoretical question and one exercise for each part of the course and it has an overall duration of 2 hours.
To pass the exam students need to get sufficient in both parts. Otherwise, it is necessary to take the entire exam again.
Assessment methods could be modified due to the continuing state of Covid 19 emergency.
Teaching methods could be modified due to the continuing state of Covid 19 emergency.
Accessibility, Disability and Inclusion
Accommodation and support services for students with disabilities and students with specific learning impairments
Ca’ Foscari abides by Italian Law (Law 17/1999; Law 170/2010) regarding support
services and accommodation available to students with disabilities. This includes students with
mobility, visual, hearing and other disabilities (Law 17/1999), and specific learning impairments (Law 170/2010). If you have a disability or impairment that requires accommodations (i.e., alternate testing, readers, note takers or interpreters) please contact the Disability and Accessibility Offices in Student Services: firstname.lastname@example.org.