- IFRS consolidation - Accounting production: How to produce IFRS consolidated financial statements
- Financial statements and appendices - Balance sheet, income statement, cash flow statement, statement of changes in equity, ICOs, appendices
- IFRS - International Financial Reporting Standards (IFRS)
- Consolidation scope - Consolidation scope - First-time consolidation - Goodwill - Minority interests
- Regroupement d'entreprises - Business combinations
- Mergers & Acquisitions Transaction - Master the implementation of acquisition/disposal processes (letter of intent, due diligence, acquisition and dataroom audits, binding offer, negotiation, closing) - Understand the transaction environment: negotiation, financial and regulatory environment
Improvement
Target audience
- Financial managers and controllers
- Chartered accountants, statutory auditors
- Finance, consolidation and accounting managers
3 day
Acquisition of control and changes in scope of consolidation
Prerequisites
It is recommended that you have a solid understanding of the principles and methods used in preparing consolidated financial statements or that you have completed the training course “IFRS Consolidation Techniques—Principles and Methods” [FHCIFR].
Objectives
◗ Identify business combinations in order to apply IFRS 3.
◗ Handle changes in the scope of consolidation, transactions with minority shareholders, capital increases, and mergers.
◗ Assess the impact of these transactions on the consolidated financial statements.
Training program
◗ Consolidation scope and methods
– Overview of determining the scope of consolidation and consolidation methods
– Relationship between consolidation methods and the treatment of changes in the scope of consolidation
✔ UNDERSTAND | Summary of control levels and consolidation methods
✔ APPLY | Case study: Transitioning from individual financial statements to consolidated financial statements
◗ Goodwill under IFRS
– Full goodwill or pro-rata goodwill: What’s the difference?
– Accounting for and tracking goodwill over time
✔ APPLY | Case study: Calculating goodwill using the two methods
✔ UNDERSTAND | Overview of acquisitions by publicly traded groups
◗ The acquisition method
– Principles of IFRS 3
– Measurement and recognition of business combinations
– Overview of the 5 steps of the acquisition method
– PPA (Purchase Price Allocation): identification of acquired assets, liabilities, and contingent liabilities
– Treatment of earn-outs and liability guarantees
– Accounting for minority interest put options
✔ UNDERSTAND | Illustration: Accounting for pre-existing relationships
✔ UNDERSTAND | Illustration: Contingent liabilities and contingent assets
✔ APPLY | Case study: Accounting for earn-outs
◗ Successive acquisitions
– Identify acquisitions that result in the recognition of goodwill
– Acquisitions of unconsolidated investments and investments accounted for using theequity method
✔ APPLY | Case Study: Successive Acquisitions – Equity-Accounted Company
✔ APPLY | Case Study: Step Acquisition – Fully Consolidated Company
◗ Processing disposals
– Disposals resulting in the loss of control or the loss of significant influence
– Disposals that do not result in a loss of control
✔ APPLY | Case Study: Accounting for a disposal resulting in a loss of control
✔ APPLY | Case Study: Accounting for adisposalwithout a loss of control
✔ APPLY | Case Study: Accounting for the disposal of a subsidiary denominated in foreign currency
◗ Other changes in scope of consolidation
– Capital increases, mergers, and stock exchanges
✔ PRACTICE | Case study: Accounting for a capital increase
✔ PRACTICE | Case study: Accounting for a TUP
◗ Discontinued operations or operations in the process of being discontinued (IFRS 5)
– Conditions for Applying IFRS 5
– Impacts on the Presentation of Financial Statements
✔ ASSESS | Quiz: When are the conditions of IFRS 5 met?
Why choose this course?
Changes in the scope of consolidation are frequent in groups. It is therefore essential to understand the accounting impact of acquisitions and disposals on the consolidated financial statements. In 3 days, this training course will enable you to acquire a robust approach to handling changes in scope, and to understand the impact on the balance sheet, income statement and cash flow statement.
Teaching and assessment methods
Before the training: Submit your expectations via your online portal 15 days before the training begins and complete a self-assessment of your skills.
Teaching Methods: A variety of methods to cater to different learning styles, encourage active participation, and reinforce learning through experimentation and practice.
Educational materials: presentation materials, reference materials (summary sheets, tables, etc.), and other resources available in your account.
During the training: a mix of theoretical concepts and examples drawn from real-life cases. Participants are given the opportunity to engage in role-playing exercises. Numerous practical exercises allow participants to demonstrate their mastery of the skills as the training progresses.
Monitoring and evaluation: attendance sheet and certificate of completion. Immediate and post-training evaluations conducted using the LearnEval platform.
Price
2,750 EXCL. TAX
Testimonials
Acquisition of control and changes in scope of consolidation
Acquisition of control and changes in scope of consolidation
Acquisition of control and changes in scope of consolidation
Jonathan C.
Company
Training