Consolidation of financial statements 2600-MRCdz2rrfKSF
The course will be introduced to the nature and structure of a capital group and its affiliates. The course covers consolidation and business combinations (reporting and asset consolidation). The objectives of financial statement consolidation will be presented in the context of implementing accounting principles. The subjective and objective scope of consolidated financial statements will be discussed in conjunction with the subjective and objective exemptions from the obligation to consolidate financial statements.
As part of the introduction to consolidation methods, the relationships between group entities will be discussed. The essence and scope of the full method will be presented, including determining the fair value of a subsidiary's assets and liabilities, summing the full amounts of relevant items in the financial statements of the parent company and the subsidiary, applying equity inclusions, calculating the consolidation difference, determining minority interest, writing off consolidation differences, and taking into account consolidation inclusions other than equity. The proportionate method of consolidation will also be described, including its essence, determining the fair value of a jointly controlled entity's assets and liabilities, equity adjustments, eliminating the effects of mutual transactions, and writing off goodwill. The final method discussed will be the equity method, including its nature, scope of use, equity method valuation of shares on the acquisition date, adjustments used in the equity method, and the use of the equity method in balance sheet valuations for financial statements. The course will conclude with a discussion of the principles of accounting for mergers and acquisitions – the acquisition method and the pooling of shares when combining financial statements.
Type of course
Course coordinators
Learning outcomes
After completing the course, the student:
Knowledge-wise:
• Defines the essence of the overarching accounting principles of accounting law, in the context of their impact on the information content of consolidated financial statements (K_W04)
• Lists the elements of consolidated financial statements and their key components (K_W05)
• Correctly classifies individual items of the consolidated balance sheet and profit and loss account (K_W05)
• Identifies the content of separate financial statement items for consolidation purposes (K_W05)
• Indicates the correct method and basic principles for combining financial statements in accordance with the Act (Art. 4a of the Accounting Act) (K_W04)
Skills-wise:
• Determines which entities in a capital group are subject to consolidation, specifying the consolidation method (K_U01)
• Identifies the individuals responsible for fulfilling obligations related to the consolidation of financial statements (K_U01)
• Prepares consolidated financial statements using the full, proportionate, and equity methods (K_U02)
• Assesses the financial situation of a capital group using consolidated financial statements (K_U09)
• accounts for the merger of companies using the acquisition and pooling of shares method (K_U02)
In terms of social competencies:
• assesses the impact of data from separate financial statements on consolidated financial statements (K_K01)
• assesses the usefulness of information from consolidated financial statements for examining the liquidity, debt, and profitability of the capital group (K_K01)
• • promotes compliance with ethical standards and legal regulations in the preparation of consolidated financial statements (K_K05)
Assessment criteria
Multiple choice exam, written exam with exercises
The final written exam is a multiple-choice test (available in-person or via an online platform).
The minimum score for the exam is 55% (rounded up). Students can only take the exam after successfully completing the course exercises.
Exercises – final written test – 70%, ongoing assessment of skills (quizzes, group work) – 30%.
Practical placement
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Bibliography
Basic items:
1. Ustawa o rachunkowości z dnia 29 września 1994. Dz. U. nr 121, poz. 591. (ze zmianami)
2. Gierusz A., Gierusz M., Konsolidacja sprawozdań finansowych według MSSF, ODDK, Gdańsk 2023.
3. Ruciński A., Konsolidacja sprawozdań finansowych, CH Beck, Warszawa 2021.
4. Remlein M., Rachunkowość grup kapitałowych, PWN, Warszawa 2019.
5. Ustawa z dnia 11 maja 2017 r. o biegłych rewidentach, firmach audytorskich oraz nadzorze publicznym (Dz. U. 2017 poz. 1089).
Additional items:
1. Pfaff J. (red.) Rachunkowość finansowa z uwzględnieniem MSSF, PWN, Warszawa 2023.
2. Turyna J., Rachunkowość finansowa, C.H. Beck, Warszawa 2014.
3. Trocki M., Grupy kapitałowe, PWN Warszawa 2004
4. Rozporządzenie Ministra Finansów z dnia 25 września 2009 r. w sprawie szczegółowych zasad sporządzania przez jednostki inne niż banki, zakłady ubezpieczeń i zakłady reasekuracji skonsolidowanych sprawozdań finansowych grup kapitałowych, aktualny stan prawny (ostatni tekst jednolity ze zmianami).
5. Międzynarodowy Standard Sprawozdawczości Finansowej (MSSF) nr 10.
Additional information
Additional information (registration calendar, class conductors, localization and schedules of classes), might be available in the USOSweb system: