Consolidated Financial Statements

Master 2022/2023

Category 'Best Course for Broadening Horizons and Diversity of Knowledge and Skills'

Category 'Best Course for New Knowledge and Skills'

Type: Elective course (Strategic Corporate Finance)

Area of studies: Finance and Credit

Delivered by: School of Finance

Where: Faculty of Economic Sciences

When: 1 year, 4 module

Mode of studies: distance learning

Online hours: 12

Open to: students of all HSE University campuses

Instructors: Sergey A. Kuzubov

Master’s programme: Strategic Corporate Finance

Language: English

ECTS credits: 3

Contact hours: 20

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Abstract

Course is designed for master students who have had experience with International Financial Reporting standards, who studied local or international financial accounting practices before or has accounting background. This course starts classification of investments into financial assets, into associated companies based on the criteria of significant influence, and into subsidiaries based on the criteria of control. We proceed with the question of business combinations starting with the development of the understanding what is business combination as it is defined in IFRS, what the notion of business is, and then discuss the indicators of this kind of deals as opposed to purchasing a selection of assets and liabilities. This course looks in details at 4 steps of accounting for business combinations, initial recognition and measurement of identified intangible assets and goodwill, calculation of non-controlling interest. It also covers the issue of subsequent goodwill impairment. Consolidation principles and techniques are studied, as well the scope of consolidation and exceptions. Also the course is focused on the accounting and reporting for associates using equity method. The course does not require extensive knowledge of mathematics and statistics. The course has a course on IFRS as a prerequisite. Ссылка на онлайн-курс:https://ru.coursera.org/learn/advanced-financial-reporting

Learning Objectives

To acquire the ability to apply specific accounting standards and legislations to different transactions and events and in preparation and presentation of consolidated financial statements of various business entities

Expected Learning Outcomes

Identify situations in which consolidated financial statements should be presentedand the scope of consolidated financial statements (IFRS 10.4).
. Define control (IFRS 10 Appendix A and IFRS 10.5-.18)
Account for a business combination in which control is achieved in stages[IFRS 3.41-.42]
Account for business combinations by applying the acquisition method [IFRS 3.4-.53]
Account for measurement period adjustments [IFRS 3.45-.50].
Determine what forms part of a business combination [IFRS 3.51-.52].
Identify a business combination [IFRS 3.3].
Test goodwill for impairment annually, or more frequently if events or changes incircumstances indicate that the asset might be impaired in accordance withIAS 36.10(b)

Course Contents

Introduction to groups.
Consolidation principles and techniques
The consolidated statement ofprofitor loss and other comprehensive income
Intra-group transactions.
Accounting for associates.
Consolidation of foreign operations

Assessment Elements

Work Activity
Homework
Written exam
This is written, closed-book computer-based exam. The examination is on the LMS platform (https://lms.hse.ru). You need to connect to the exam according to the schedule. If you cannot take an exam, you must contact the instructor prior to the start of the exam. All questions in the exam are compulsory. The exam contains a mix of objective test with 20 multiple-choice questions (4 marks) and longer problem study for consolidation (6 marks) with a duration of 2 hours. The pass mark will be 40%. At all written exams the student has access to the basic IT application package (Microsoft Office), pen and paper Students are not allowed during the exam: to use lecture notes, internet resources and other hints. A momentary disruption of communication during the examination is considered to be a communication failure of less than one minute. Long-term disruption of communication during the examination is considered a violation of one minute or more. If there is a long-term disruption in communication, the student cannot continue to take the exam. The retake procedure involves the use of complicated tasks.

Interim Assessment

2022/2023 4th module
0.1 * Work Activity + 0.5 * Written exam + 0.4 * Homework

Bibliography

Recommended Core Bibliography

Krimpmann, A. (2015). Principles of Group Accounting Under IFRS. Chichester, West Sussex, UK: Wiley. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=968959

Recommended Additional Bibliography

Association of Chartered Certified Accountants (Great Britain). (2017). ACCA (Vol. Tenth edition). Wokingham, Berkshire: BPP Learning Media. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=nlebk&AN=1516458
BPP Learning Media (Firm). (2017). ACCA Paper F7 (Vol. Eleventh edition). London: BPP Learning Media. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=1515138

Authors

KUZUBOV SERGEY ANATOLEVICH

Course Syllabus