Group accounting and performance (2014/2015)

Course partially running (all years except the first)



Course code
4S02472
Credits
9
Coordinator
Cristina Florio
Academic sector
SECS-P/07 - BUSINESS ADMINISTRATION AND ACCOUNTING STUDIES
Language of instruction
Italian
Teaching is organised as follows:
Activity Credits Period Academic staff Timetable
lezione 1 7 Primo semestre Cristina Florio
lezione 2 2 Primo semestre Francesca Rossignoli

Lesson timetable

Primo semestre
Activity Day Time Type Place Note
lezione 1 Tuesday 11:30 AM - 2:00 PM lesson Lecture Hall VM1  
lezione 1 Wednesday 9:30 AM - 12:00 PM lesson Lecture Hall VM1  

Learning outcomes

The main objective of this course is to develop participants’ skills in understanding and analyzing groups of companies, with specific reference to creation processes, purposes and determinants, as well as performance representation and analysis.
In particular, the course is structured into three parts: the first part aims at exploring groups' constitutive factors, the reasons behind their creation, and the objectives expected by this form of dimensional growth; the second part is devoted to the preparation of consolidated financial statements; finally, the third part develops the ability to understand the consolidated economic and financial equilibrium, and the most important techniques to study groups performance.
In order to encourage students’ learning ability, the course is structured into theoretical lessons, practical applications, and discussions of case studies selected to offer examples and insights of the topics examined.

Syllabus

Part 1 - Group of companies: Genesis and morphology
1.1 Variety of cooperative forms
1.1.1 Collaborations between firms: Why
1.1.2 Collaborations between firms: How
1.1.2.1 Non-equity aggregations
1.1.2.2 Equity aggregations
1.2 Group of companies concept, creation process and determinant
1.2.1 Reasons and definition
1.2.2 Constitutive factors
1.2.3 Creation processes
1.2.4 Determinants of groups creation
1.3 Group of companies classifications

Part 2 - Principles and practice of group accounts
2.1 Basic concepts: consolidated net income and equity
2.2 Consolidated financial statement: introduction and methodology
2.2.1 Objective and content
2.2.2 Logical and procedural steps
2.2.3 Technicalities
2.3 Consolidation methods
2.3.1 Full consolidation
2.3.2 Proportional consolidation
2.3.3 Equity method of consolidation
2.4 Consolidated financial statement according to IAS/IFRS
2.4.1 Sources of reference
2.4.2 Consolidation area
2.4.3 Consolidation procedure

Part 3 - Analysis of group performance
3.1 Limitations of CFSs and tools to investigate group performance
3.2 Concept of equilibrium for groups of companies
3.3 Economic equilibrium within groups
3.3.1 Conceptual assessment
3.3.2 Economic equilibrium worsening path
3.3.3 Tools for the analysis of group profitability
3.4 Financial equilibrium
3.4.1 Conceptual assessment
3.4.2 Financial equilibrium worsening path
3.4.3 Tools for the analysis of group financial equilibrium
3.5 Segment reporting
3.6 Reconciliation statement

Studying Materials:
- Slides, case studies, research reports and all other teaching materials provided by the e-learning center
- Ditillo A., Caglio A., Controlling Collaboration Between Firms, CIMA Publishing, 2008 (Chapter 1 only)
- Gallimberti C., Marra A., Prencipe A., Consolidation – Preparing and understanding consolidated financial statements under IFRS, McGraw-Hill Education, Milano, 2013 (Chapters 3-6 and 8)
- Petersen C. V., Plenborg T., Financial Statement Analysis, Prentice Hall, 2012 (Chapters 4-7)

PS: In the academic year 2014/2015 the course will be held in English.

Assessment methods and criteria

The exam consists of a written test which may include multiple-choice questions, semi-open questions, case analysis and numerical exercises.
Each student has the possibility to require an oral supplement test after being successful in the written test.

Teaching aids
Title Format (Language, Size, Publication date)
0_Course Introduction_2014  pdfpdf (it, 610 KB, 14/09/14)