CONSOLIDATED FINANCIAL STATEMENT

Single discipline educational activity

Course Sheet

Academic Year of enrolment:

2017/2018

Type of Course:

Related/Supplementary

Optional/Mandatory:

Optional

Degree:

Master's Degree Programme in BUSINESS ADMINISTRATION

Disciplinary Sector:

Business Administration

Credits:

Programme Year:

Professor and Collaborators:

CORSI Katia

Hours of classroom activity:

Prerequisites:

A good and deep accounting knowledge

AF code:

A001013

Assessment Methods

Verification of learning:

Final written test lasting 1.5 hours. It is diversified to evaluate the different skills of the students on all the issues dealt with. In particular, the test consists of three parts: the first part, aimed at verifying a general competence of the subjects, mades up of 10 closed questions (max 10 points); the second part consists of two open questions in order to verify the elaboration and reflection capacity, as well as the synthesis capacity (max 10 points) and the third operative part consists of two or three exercises, aimed at verifying the acquired technical skills ( max 13 points). The minimum score (18) requires the demonstration of an elementary knowledge; the maximum score (30) requires the correct use of analytical tools and a very good competence of the subjects. Given the complexity of the issues a margin of error of 3 points is foreseen.
The use of the calculator is allowed

Teaching period

Second semester

Objectives

The course aims to investigate the consolidated financial statements by analyzing the drafting process, its ability to represent the economic, financial and equity situation of a corporate group and the interpretation of its values. The preparation of the consolidated financial statements is studied with reference to Italian law, national and international accounting standards. At the end of the course the student will be able to prepare, read and interpret the consolidated financial statements.
At the end of the course the student will have acquired:
(1) Knowledge and ability to understand: know the phenomenon of the corporate group and the main motivations that support it; know the possible consolidation theories that inform the preparation of the consolidated financial statements; draw up and interpret the consolidated financial statements , in particular in relation to the specific items that characterize it.
(2) Ability to apply knowledge and understanding: to be able to draw up the consolidated financial statements starting from the financial statements of the companies that make up the corporate group, identifying the consolidation area, homogenizing these financial statements and proceeding with their consolidation; to determine and interpret the specific items relating to consolidation differences and minority interests; to represent specific group policies in the financial statements, such as intra-group transactions and equity leverage.
(3) Autonomy of judgment: ability to analyze and interpret the data of the consolidated financial statements together with the financial statements of the parent company, to better evaluate the policies of the companies, and the income and capital of a corporate group.
(4) Communication skills: although this course does not foresee specific activities aimed at developing communication skills, the student will be able to operate within heterogeneous teams work, highlighting the peculiarities and differences of the business analysis and financial perspective with respect to the other human and social sciences. The student will also be able to express considerations on the more complex financial statement.
(5) Learning skills: the critical-conceptual content of course promotes the deepening of every possible accounting issue in big firm and also in several contexts.

Contents

The corporate group: motivations and classifications (4 h); Introduction to the consolidated financial statements: group income and capital (2 h); the consolidation process: the phases of definition of area and homogenization of single companies financial statements (4 h); consolidation theories (4 h); The determination of consolidation differences (4 h); analytical consolidation and synthetic consolidation (4 h); indirect shares: gradual and simultaneous consolidation (4 h); intragroup transactions (4 h).

Recommended Bibliography

TEODORI C., Il bilancio consolidato: La metodologia di costruzione e il profilo informativo, Milano, Giuffrè Editore, 2012.
Additional teaching material available in the course’s area of the site on edisea.uniss.it

Teaching Methods

Frontal lessons with the support of power point slides and whiteboard. Numerous numerical examples are provided during the lessons.
Supplementary teaching activities (practice exercises) up to a maximum of 12 hours aimed at the implementation of the contents dealt with in the lessons and focused on the homogenization of financial statements expressed in foreign currency, on the consolidation theories with the use of the consolidation sheet, on simultaneous consolidation and intra-group transactions. The exercises are held in the classroom with a track for the students and the solution guided by the teacher.
The slides used in classroom, the tracks and some solutions of the exercises are available on the teacher's page on the site http://edisea.uniss.it/

Contacts/More Information

1) availability to provide a tutoring service (eg student reception, explanations in the classroom) also in English for Erasmus students; 2) availability to provide supplementary teaching materials and bibliographic references;
3)for receiving students, please consult www.edisea.uniss.it;
4) contacts: kcorsi@uniss.it; phone: 079/079213033

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CONSOLIDATED FINANCIAL STATEMENT