Сonsolidation of financial statements: complex issues

Target Audience:Employees of IFRS departments, accountants, financiers Duration:7 hours Provider:Alinga Consulting Group Venue:AEB Conference Centre, Moscow, Butyrsky val, 68/70 build.1, office 13Language:RussianCoach:Svetlana Bobovnikova
Svetlana BobovnikovaSvetlana Bobovnikova

Terms and Conditions

– The deadline for registration & payment is usually 5 days before the starting date of the course;
– Those who do not register and pay by the deadline will not be allowed to participate in the training;
– All payments are to be made by bank transfer;
– Once registration is closed, the fee is non-refundable.

Training objectives and advantages
The seminar introduces the analysis of complex problems arising in the consolidation of the Group's financial statements: errors in determining the perimeter of consolidation, estimating the fair value of assets and liabilities, assessing the availability of control, eliminating group turnover, changes in the structure of the Group, etc.

Training program
1. Determination of the consolidation perimeter. Errors associated with the misuse of the concept of control, which underlies the consolidation. Using an effective share in a subsidiary to determine control. Situations where control takes place, when available:
• features of the contract for the acquisition of shares (stakes);
• the ratio of voting shares of different shareholders;
• established practice of decision-making and other circumstances.
2. Determination of fair value at the date of acquisition. The main problems of collecting information in an active market when estimating the fair value of identifiable net assets. Cases when it is advisable to contact the appraisers. Defining the objectives and key parameters of the task for the appraiser. Use of evaluation results.
3. Problems of obtaining reliable and qualitative information from the accounting department of the subsidiary:
• professional unpreparedness of accounting staff of the subsidiary due to the fact that they did not participate in the preparation of IFRS financial statements before and did not receive appropriate training;
• the psychological unpreparedness of the employees of the subsidiary to fulfill the requirements, since they perceive the necessity to prepare information tables as a whim of the parent company, and do not understand how and why the information will be used;
• Difference in methods of accounting, accounting systems, accounting policies, organization of work of accounting, etc.
4. Elimination of intra-group turnover. Technical difficulties in identifying intra-group receivables and payables, purchases and sales, financial investments and loans received. Elimination of intra-group turnover for large groups with a large number of intra-group operations. Sale of fixed assets between companies of the group.
5. Errors in the calculation of consolidation adjustments. The Group's capital, "cross" ownership. Change the structure of the Group. Determination of the proportion of non-controlling shareholders. Deferred taxes.

Methodology of training delivery
Lecture, group discussion, case study