This course is an introduction to the financial consolidation under IFRS.
It AIMS to Introduce people-have never Who Dealt with financial consolidation to icts basics.
In this race, you will undertand what is financial consolidation, why do we do and when to consolidate consolidate.
Aim the hand thing That You will know is HOW do we consolidate. in fact, this race will present the financial consolidation process from the definition of the scope of the companies thta we include in our shoulds consolidtion, to the method of consolidation and definition of the Goodwill.
We are going aussi see how to translate financial accounts of foreign filiales.
There Will Be one test after-Each section and a case study at the end of this race.
In this session, we will try to answer all the questions related to financial consolidation.
We are going to talk about international financial reporting standards (IFRS) and the body in charge of developping thos standards.
We are also going to explain what are consolidated accounts, when do we talk about consolidated accounts, and why we produce them.
The answer of the question"HOW" we are going to see it in the next session!!
Te aim of this test is to ensure hat you learn the definitions related to financial Consolidation
The definition of the scope is the first step in the process of the consolidation.
based on the scope, we decide which company to include or exclude in the consolidation process.
in order to define the scope, we need to calculate our voting rights, analyse the relation between the parent and the subsidiary and define the method of consolidation
The full consolidation method is used when the parent is having exclusive control over the subsidiary
This method is based on the combination of the financial accounts of the parent and the subsidiary adding adjustements that consist on eliminating the investment of the parent in the subsidiary and dividing the equity of the subsidiary between the parent and the non controlling interest.
In this session, we also see why do we eliminate intergroup operations and how to do it
In this session, we are going to explain how we do consolidate companies under signifcant influence using the equity method which consists on increasing or decreasing the carrying amount by the profit or loss made by the sybsidiary.
In this session, we are going to see how do we translate foreign subsidiaries.
the consolidated accounts are generally made using the currency of the parent, so all the subsidiaries should be translated in this currency.
the principales of the translation:
- The balance sheet: using the closing rate
- The income statement: using the average rate of the periode
- the diffrence should be recognized in "other comprehensive incomes"
In this session, we are going to see what is the goodwill and how do we calculate it.
The aim in this test is to ensure that you have mastered the process of the financial Consolidation.
For each session, you have some questions to answer to.
Future Chartred Accountant, Expert in Financial Consolidation and IFRS
I have an experience of more than 8 years in financial Consolidation
I worked as an auditor in one if the big firms of auditing and i have also been the head of consolidation departement in one of the biggest banks in my country.
I am actually head of financial Consolidation and reporting departement in one of the biggest mass retailing compnies.
I am very passioned by financial Consolidation and IFRS and I would be very happy to share my experience with students and people interested in financial consolidation.