ICFD: Consolidation of Financial Statements (BBA30009)

General information

Type:	OP	Curs:	3	Period:	S semester
ECTS Credits:	4 ECTS

Teaching Staff:

Group	Teacher	Department	Language
Ed: 1	Juan Carlos Peralta Niubo	Economía, Finanzas y Contabilidad	ENG

Group	Teacher	Department	Language
Ed: 2	Juan Carlos Peralta Niubo	Economía, Finanzas y Contabilidad	ENG

Having passed two semesters of Accounting and one sem of Financial Analysis or equivaldent.
It is very useful to have some knowledge on Corporate Finance

Workload distribution:

Presential: 30 h (10 sesiones /Master class)
Tutorial: 3 h
Personal work: 40 h

Most of the large (and not so large) companies use to structure and organise its activity through different companies, attending functional aspects ( by product line, geographic markets, distribution channels, activities, etc.) as well as strategic aspects (business partners, risk limitation strategy, tax regulation or advantages, etc.)

To learn about the global reality of the company from a financial standpoint it is necessary to draw up a consolidated financial statements comprehnsive of the whole assets and liabilities of the group, as well as their revenues and expenses and other business information but eliminating all the effects comming from the internal transactions and showing only the assets, liabilities, revenues and expenses related to third parties.

How to integrate information from different business units will depend on the type of control the holding company might have over the subsidiaries or investees, but in any case, it is necessary that the information is prepared according in consistent and systematic criteria.

The techniques for consolidating this information should take into account the reality of the internationalization of business activity, not only by the diversity of information obtained from the various subsidiaries, but by the applicable regulations in each market with regard to the preparation of their financial statements.

Finally, we need to know the techniques to prepare the consolidated information to present to the financial markets through the Consolidated Financial Statements and, at the same time, be able to read and understant correctly the information provided by other entities.

15. Comprehension of relational networks

3. Taking decisions / making judgments

2. Application of knowledge to achieve results

12. Autonomy, independence, initiative, pro-activeness

18. Teamwork and collaboration

1. Knowledge acquisition, comprehension and structuring

1. Professional regulation and procedures applicable to the preparation of consolidated financial statements

2. The obligation to consolidate.

3. Consolidation Methods.

4. Working methodology in the consolidation process

5. Consolidation record bookeeping

6. Treatment of the main consolidation adjustments

7. Dynamics of consolidation Dynamics of consolidation: first and subsequent years, modification of the group structure, investment and disinvestments in the consolidated companies.

8. Internationalization and their effects on consolidation Internationalization and their effects on consolidation. Foreign currencies

9. Treatment of the tax effects

ASSESSMENT BREAKDOWN

Basic bibliography:
- International Accounting Standard (IAS) 27.
- International Financial Reporting Standard (IFRS) 3
- Normas para formulación de las Cuentas Anuales Consolidadas: Real Decreto 1159/2010, de 17/9
- Norma Internacional de Contabilidad (NIC)- International Accounting Standard (IAS) 27.
- Norma Internacional de Información Financiera (NIIF) -International Financial Reporting Standard (IFRS) 3
- Plan General de Contabilidad: REAL DECRETO 1514/2007, de 16 de noviembre
- Real Decreto Legislativo 1/2010, de 2 de julio, de Sociedades de Capital.
- Ley del Impuesto sobre Sociedades: Real Decreto Legislativo 4/2004, de 5 de marzo

Group	Teacher	Department
Ed: 1	Juan Carlos Peralta Niubo	Economía, Finanzas y Contabilidad

Group	Teacher	Department
Ed: 2	Juan Carlos Peralta Niubo	Economía, Finanzas y Contabilidad