This course aims to develop participants’ skills in understanding and analyzing groups of companies as a form of network useful to pursue dimensional and geographical – and thus international - growth of a business activity.
First, the course explores the groups’ constitutive factors, creation processes and purposes, as well as the possible forms of groups. Second, the course focuses on the representation of consolidated equity and income through the preparation of the consolidated financial statement according to the International Financial Reporting Standards (IAS/IFRS). Finally, by building on the knowledge acquired about the group’s structure and the capability of reading a consolidated financial statement, the course develops the ability to carry out an insightful analysis and to express a comprehensive judgment of the group performance, by relying on the most important techniques and reports.
At the end of the course, the student will be able to:
- Know and understand different forms of business networks and groups, as well as judging their consistency with business goals;
- Prepare and read a consolidated financial statement according to the IAS/IFRS, building on the knowledge, practical competences and independent judgment capability developed;
- Carry out a technical analysis and express a judgment on the group financial performance;
- Communicate effectively on strategic, managerial and performance profiles of groups of companies aimed at favoring business internationalization.
The course program is structured into 3 parts:
1. Genesis, structure and governance of groups of companies.
1.1. The creation of groups: Purposes and processes – 1.2. Determinants of groups creation – 1.3. Groups classifications – 1.4. Governance structure in groups: The relationship between ownership and direction, and the role of minorities – 1.5. Conflict of interest within groups – 1.6. The transfer price mechanism – 1.7. Firm and group direction.
2. Theory and technique of consolidated financial statement
2.1. Introduction to the consolidated financial statement – 2.2. Integration logic and consolidation methods – 2.3. Regulation: The consolidated financial statement in Italy – 2.4. Scope of consolidation – 2.5. The consolidation process: 2.5.1. Preliminay adjustments – 2.5.2 Genesis and accounting treatment of the consolidation difference – 2.5.3. The adjustment of intragroup transactions – 2.5.4. Non-controlling interests – 2.5.5 Accounting treatment for unconsolidated participations.
3. Analysis and assessment of the group’s performance
3.1. The group informative system – 3.2. Information content of consolidated financial statement and performance analysis at the group level – 3.3. Segment reporting – 3.4. The reconciliation statement – 3.5. Economic equilibrium at the group level – 3.6 Financial equilibrium at the group level: – 3.6.1. Share leverage – 3.6.2 Financial leverage – 3.7. Overall judgement on the group’s performance.
In order to encourage students’ learning ability, the course adopts an integrated approach that combines theoretical lessons, practical applications, discussion of case studies and analysis of a consolidated financial statement. The course includes also some seminars with representatives of groups of companies.
During the lessons some exam simulations will be made available.
During the whole academic year, individual office hour is offered by the Lecturers (please see the Lecturers' web page for updated office hours). The Lecturers are also available on appointment (please send an e-mail).
The content of the textbook, of the lessons and the exercises carried out during the course is consistent with the programme. Both the programme and the studying materials are the same for students who attend and students who do not attend the course. Teaching slides, further readings and accounting standards will be available on the e-learning platform (teaching Dashboard).
|U. Sòstero, F. Cerbioni, C. Saccon||Bilancio consolidato:disciplina nazionale e IFRS (Edizione 2)||McGraw-Hill Education, Milano||2018||9788838695179|
The exam consists of a written test in order to verify the theoretical and practical knowledge acquired.
The exam lasts 1 hour and 30 minutes.
The written test includes three questions (1 exercise on consolidation accounting and 2 semi-open questions). The test is successful if the mark is at least equal to 18/30 in each one of the three questions.
Students who pass the written test may request an oral test if he/she is confident of reaching higher mark.