Preparation of Consolidated Financial Statements (Basic)
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Preparation of Consolidated Financial Statements (Basic)

In this video tutorial you will learn how you can prepare consolidated financial statements in real life.
4.0 (2 ratings)
Instead of using a simple lifetime average, Udemy calculates a course's star rating by considering a number of different factors such as the number of ratings, the age of ratings, and the likelihood of fraudulent ratings.
1,088 students enrolled
Last updated 6/2017
English
Current price: $10 Original price: $25 Discount: 60% off
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Includes:
  • 1.5 hours on-demand video
  • 11 Supplemental Resources
  • Full lifetime access
  • Access on mobile and TV
  • Certificate of Completion
What Will I Learn?
  • Understand the method regarding the preparation of the consolidated financial statements
View Curriculum
Requirements
  • Accounting Knowledge (Understand how to prepare basic Financial Statements or at least how to prepare the balance sheet and Profit and Loss)
Description

This course explains the steps for the preparation of consolidated financial statements. The course will provide details regarding the preparation of the following parts :

  • Consolidated Statement of profit and loss and other comprehensive income
  • Consolidated Statement of Financial Position
  • Consolidated Statement of Changes in Equity

Note: Financial statements notes and cash flow are excluded.

You will learn from the beginning until to the end how you consolidate the financial figures fo two entities. In this course you will learn how the actual accountants prepare consolidated financial statements. The course explain the consolidation process for the following 2 scenarios.

  1.  You receive and consolidate the final financial statements (or management accounts) of 2 entities. (not happen in real life )
  2.  You receive and consolidate the final Trial Balances of the 2 entities. Then you use the consolidated TB for the preparation of the consolidated Financial Statements ( what happen in real life)

Our example is based on 2 companies. The 1st company purchased the 90% of the shares of the 2nd company. Both companies currency is the same. The 1st company sells products and the 2nd company sells services.

For our presentation I use the following:

  • PowerPoint
  • Excel
  • PDF
  • PC White Board
  • Writing tablet (perform calculation, highlight and draw during the presentations)

During the presentations there is audio and on going calculations and indications

Who is the target audience?
  • Students studing accounting/finance
  • Employees working on accounting/finance department
  • Students/employees want to expand their accounting/finance kwoledge
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Curriculum For This Course
18 Lectures
01:33:29
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Introduction
1 Lecture 03:49

Introduction showing the consolidated financial statements that we are going to prepare at the end of this course.

Preview 03:49
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Review the consolidated entities and the group structure
1 Lecture 07:05

This video states the business transactions of each entity (Parent Company and Subsidiary Company) the group structure.

Detailed transactions for each entity have been uploaded.

Preview 07:05
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Consolidation steps
1 Lecture 01:12

A short video explaining the basic consolidation steps

Consolidation steps
01:12
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Step 1: Obtain the financial figures for the preparation of the consolidated FS
1 Lecture 02:13

This video explains what financial information you need to obtain before the consolidation.

All the financial information have been uploaded.

Step 1: Obtain the financial figures
02:13
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Step 2: Calculation of net assets at the time of acquisition
1 Lecture 08:36

This video explains the calculation of Net Assets at the time of acquisition.

Step 2: Calculation of net assets at the time of acquisition
08:36
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Step 3: Calculation of goodwill
1 Lecture 02:56

This video explains the calculation of goodwill at the time of acquisition.

Step 3: Calculation of goodwill
02:56
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Step 4, 5, 6: Consolidation process (Financial Statements)
1 Lecture 04:08

This video explains the methods that we are going to use in order to prepare the consolidated financial statements (2 methods).

Preview 04:08
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Consolidation process (Financial Statements)
2 Lectures 25:43

Method 1: Consolidation method regarding the Statement of Financial Position

Consolidation - Statement of Financial Position
11:37

Method 1: Consolidation method regarding the Statement of Comprehensive Income

In addition this video explains:

a) The calculation of the group retained earning belong to the members of the parent company.

b)The calculation of the group retained earning belong to Non-Controlling Interest (NCI)

Consolidation - Statement of Comprehensive income plus workings
14:06
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Consolidation process (Trial Balances)
5 Lectures 16:55

Explain how to prepare the consolidated Trial Balance before the consolidation adjustments.

The consolidated Trial Balance was uploaded.

Preparing the consolidated Trial Balance
05:35

This video explains the calculation of goodwill and the relevant adjusting entry.

Adj Entry 1 - Calculation of goodwill
05:35

This video explains the calculation of post acquisition profit that belong to the Non Controlling Interest (NCI) and the relevant adjusting entry.

Adj Entry 2 - Post acquisition profit for NCI
02:21

This video explains the inter-company balances elimination  adjusting entry.

Adj Entry 3 - Elimination of inter-company year end balances
01:31

This video explains the inter-company transactions elimination  adjusting entry.

Adj Entry 4 - Elimination of inter-company transations
01:53
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Preparation of Consolidated Financial Statements using consolidated TB
4 Lectures 20:52

This video explains how you use the consolidated Trial Balance in order to prepare the Statement of Comprehensive Income

Covert consolidated TB to Consolidated Statement of Comprehensive Income
05:33

This video explains how you use the consolidated Trial Balance in order to prepare the Statement of Financial Statement

Convert consolidated TB to Consolidated Statement of Financial Position
08:03

This video explains how you use the Consolidated Statement of Financial Position and the Consolidated Statement of Comprehensive Income in order to prepare the Consolidated Statement of Changes in Equity.

Preparation of the Statement of Changes in Equity
06:28

A short review of the final Consolidated Financial Statements  (extract)

The final Consolidated Financial Statements have been uploaded.

Preview 00:48
About the Instructor
Michalis Iosif, BSc Economics, ACCA
4.0 Average rating
2 Reviews
1,088 Students
1 Course
Accountant / Financial Advisor

I am an experienced and qualified accountant member of ACCA and a holder of 4 year bachelor degree in Economics. I have extensive experience as financial auditor and in preparation of financial statements under IFRs . In addition I worked as a chef accountant for an investment firm.

Throughout my working experience and training I am able to advise and help you in various finance and accounting topics (i.e. building an efficient internal control, business plans and feasibility studies, accounting, vat and taxation etc)