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Consolidated Financial Statements

Consolidated Financial Statements

Code: ACC3LF005
Extent: 3 ECTS (81 h)
Timing: Semester 5 - 7
Language: English
Level: Professional Specialization Studies
Type: Compulsory to those chosen ACC1LF Financial Management for Global Business as their specialisation.

Prerequisites

The student has successfully completed the GloBBA Basic and Joint Professional Studies and International Financial Accounting ACC3LF002 –course. The course is part of the module of Financial Management for Global Business.

Learning outcomes

  • Upon successful completion of the course, the student knows the definition of a group and requirements to prepare consolidated accounts 
  • knows accounting treatment and methods of subsidiaries concerning inter-company business transactions 
  • understands and is able to report non-controlling interest 
  • is able consolidate international associated companies into accounting 
  • learns the conversion and translation for foreign currency for presentation in the consolidated financial statements 
  • can prepare a small group’s consolidated financial statements
  • has enhanced his/her HH3S competences as applicable to the course.

Course contents

  • Definition of a group and reasons for consolidated accounts
  • Accounting for groups at the date of acquisition under IFRS 3 
  • Preparation of consolidated balance sheet after the date of acquisition under IAS 27 
  • Preparation of consolidated income statements under IAS 1 
  • Accounting for associated companies and the equity method under IAS 28, IAS 31 
  • Accounting for the effects of changes in foreign exchange rates under IAS 21

Cooperation with the business community

Real business based examples and cases.

International dimension

Topics based on IFRS- International Financial Reporting Standards. International and global business approach to course themes and topics, contributions by multinational student groups and company cooperation.

Teaching and learning methods

Contact lessons
Case studies
XL-assignments
Analysis
The assessment of one’s own learning 1 h

Accreditation of prior learning

Accreditation of prior learning (APL) is observed on the course according to separate instructions. Please contact the teacher in advance for these cases.

Teacher with the main responsibility for the course

Heli Kortesalmi

Course materials

Material given by the teacher
Harrison, Horngren, Thomas & Suwardy: Financial Accounting: International Financial reporting Standards. 98th edition. Pearson. Only chapters 8 and 10 chapter.
Aditional reading: Alfredson, Leo, Picker, Loftus, Clark, Wise: Applying International Financial Reporting Standards. Part 4. Wiley
Additional reading (will be available in the library soon): Mahony, Paul & MacLochlainn, Niall (2013). Consolidated Financial Statements 2nd. edition. Chartered Accountants of Ireland.

Assessment of Learning Outcomes and Criteria

Grade/Learning outcomes

1 (Min. 40%
competence level)
3 (Min. 70%
competence level)
5 (Min. 90%
competence level)
Knowledge

The student can name some concepts related to consolidated financial statements.

The student can explain the meaning/importance of consolidated financial statements.

The student is able to estimate the need for consolidated financial statements and can develop tools for creating the eliminations.

Skills

The student knows how to prepare basic eliminations for consolidated financial statement.

The student is able to choose the right eliminations for consolidated financial statement.

The student can excellently choose the right eliminations for consolidated financial statement.

Competence

The student is able to complete a simple group’s consolidated financial statement with the help of a supervisor. The student shows poor service and sales orientation as required by the HH3S policy.

The student is able to complete a simple group’s consolidated financial statement relatively independently. The student shows good service and sales orientation as required by the HH3S policy.

The student is able to complete a simple group’s consolidated financial statement very independently. The student shows excellent service and sales orientation as required by the HH3S policy.

Modes of assessment and their weights

Individual elimination assignment 30 %
Exam 70 %

The assessment of one's own learning does not influence the course grade. The assignment is the same for all courses/modules and the answers will also be used for course/module development. The assignment is completed on an E-form.