Consolidated financial statements or the Group accounts is an integral part of corporate reporting in a group of companies. It is a critical statement as it can provide a macro and comprehensive view of a group’s financial position by combining financial data from all its subsidiaries and merge it to the parent company for reporting purposes.
There are considerable challenges when preparing group consolidated financial statements, in particularly with the changes in the controlling and non-controlling interests, profit allocation and goodwill.
Having a sound basic understanding of the whole group consolidation process and subsequent events is critical to display a clear insight into the group financial performance and fulfilling the MFRS reporting requirements.
Brochure
— Course Fee: RM 790.00 (Inclusive of 8% Service Tax) —
Module 1: Introduction to Group Accounts
- Definition of business and business combinations.
- Relevant MFRS on group consolidation.
- Identifying both the acquirer/investor and the acquiree/investee.
- When is the acquisition takes place and what are the consideration transferred.
- Who has to prepare consolidated financial statements.
- Who is exempted from group accounts.
Module 2: Identifying Assets acquired and Liabilities assumed upon acquisition
- The Acquisition Method
- Principles in measuring assets and liabilities acquired
- Recognition value of assets and liabilities acquired in the books
Module 3: Goodwill on Consolidation
- What is goodwill on consolidation
- Types of goodwill – Positive & Negative goodwill (Bargain Purchase)
- Calculation and measurement of goodwill
- Recognition value of goodwill in the books
Module 4: Non-Controlling Interest (NCI)
- What is non-controlling interest (NCI)
- Calculation and measurement of NCI
- Recognition value of NCI in the books
Module 5: Pre Acquisition & Post-Acquisition era
- Identifying transactions in pre-acquisition period
- Identifying transactions in post-acquisition period
- Impairment of goodwill in post-acquisition period
- Updating of NCI in post-acquisition period
- Intra-group transactions
Module 6: Basic Practical consolidation exercise
- Consolidation Steps
- Preparation of consolidated statement of financial position
- Preparation of consolidated statement of profit or loss and comprehensive income
- Preparation of consolidated statement of changes in equity
- Disclosure of notes to the financial statements