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 adopts an integrated approach that combines theoretical lessons, practical applications, and discussions of case studies.
Part 1 - Group of companies: Genesis and morphology
1.1 Cooperative forms
1.2 Group of companies concept, creation purposes and processes
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 Consolidated financial statement
2.1.1 Objective and content
2.1.2 Logical and procedural steps
2.2 Full consolidation method
2.3 Consolidated financial statement according to IAS/IFRS
2.3.1 Sources of reference
2.3.2 Consolidation area
2.3.3 Consolidation procedure
Part 3 - Analysis of group performance
3.1 Analysis of group performance: purpose and methodology
3.2 Profitability analysis within groups
3.3 Solvency analysis within groups
3.4. Other tools for the analysis of group performance
3.4.1 Segment reporting
3.4.2 Reconciliation statement
3.4.3 Integrated reporting
|Gallimberti C., Marra A., Prencipe A.||Consolidation – Preparing and understanding consolidated financial statements under IFRS||McGraw-Hill Education||2013||Chapters 3-6 and 8|
|Ditillo A., Caglio A.||Controlling Collaboration Between Firms||CIMA Publishing||2008||Chapter 1|
|Petersen C.V., Plenborg T.||Financial Statement Analysis||Prentice Hall||2012||Chapters 4-7|
Students will be assessed by an intermediate and a final exam:
1. The intermediate exam consists in a group-work analyses of the structure, M&A activity and performance of an assigned group of companies. The intermediate exam aims at assessing the capability acquired on performing and discussing a meaningful group analysis, both at a technical and an interpretive level. Presentations consists of 15-20 pages and are due towards the end of the course. They will be discussed in classroom in 20 minutes per group and will provide students with maximum 4/31 points.
2. The final exam consists in an individual written test on the whole program, that will include multiple-choice or true/false questions, semi-open questions, case analysis and/or numerical exercises. The exam lasts 90 minutes and will provide students with maximum 27/31 points.