Consolidated Financial Statements

Introduction

Unified financial data is an integral part of the accounting process for group companies. This information provides a holistic view of the entire business activity, which is often lost when looking only at the financial figures of the parent or one subsidiary. The use of unified financial data is essential today for any organization operating within a group, regardless of the stage of the business. By choosing to use consolidation software, it is possible to reduce the complexity of preparing these statements and improve their usability as a result. In unified financial data, the financial data of the parent company and its subsidiaries will be consolidated as if they were one economic entity. Preparing unified financial data involves complex and highly intricate procedures. However, the training course on consolidating financial data and investment accounting will guide you step by step on how to prepare unified financial data.

Course Objectives

• Understand the process of consolidating financial data.
• Identify business groups and related transactions.
• Apply the method of acquiring business groups.
• Calculate minority interest and non-controlling interests.
• Identify different types of financial instruments and their accounting methods.
• Calculate transactions based on fair value, equity method, and extinguishment of cost.
• Understand the differences and similarities between International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP).

Course Outlines

Day 1
Introduction to the Consolidation of Financial Data

• Concept of unified financial data
• The importance of unified financial data for group companies
• Challenges and benefits of using unified financial data
• The role of consolidation software in facilitating the preparation of unified financial data
• Review of transactions and balances between sister companies

Day 2
Financial Instruments and their Classification

• Definition of financial instruments
• Categories of investments and their types
• Classification of financial instruments and measurement methods
• Differences between available-for-sale securities, held-to-maturity bonds, and trading securities
• Post-merger measurement and accounting

Day 3
Accounting for Business Groups and Investments

• Presentation of financial instruments and determination of fair value
• Calculation of fame and non-controlling interests
• Accounting for transactions based on different methods (fair value, equity method, extinguishment of cost)
• Interplay between International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP)
• Treatment of vested rights and contingent liabilities

Day 4
Investments in Fellow Companies and Determining the Acquirer

• Accounting for investments in fellow companies
• Determination of the acquirer and evaluation of tangible and intangible assets
• Classification and assignment of assets and liabilities
• Treatment of year-end differences and transactions between sister companies
• Preparation of consolidated financial statements and measurement of fame

Day 5
Practical Applications in Preparing Consolidated Financial Statements

• Practical training session on preparing consolidated financial statements
• Review of financial data for the parent company and subsidiaries
• Analysis of assets, liabilities, revenues, and expenses for each entity
• Use of specialized software in preparing consolidated financial statements
• Workshop on overcoming practical difficulties

Case Study

 Preparing Unified Financial Statements for a Group

• Guiding participants in preparing unified financial statements for a group of companies
• Interacting with realistic challenges that may arise during the consolidation process
• Discussion of solutions and derived conclusions
• Evaluation and analysis of consolidated financial statements

Query and Discussion Session

• Opportunity for participants to ask questions and discuss any challenges they face in consolidating financial data
• Exchange of experiences and solutions among participants and the trainer.