S1009D - CORPORATE GROUPS AND CONSOLIDATED FINANCIAL STATEMENTS

The course contributes to providing specialized and in-depth preparation in the economic-financial reporting of business groups and in understanding their dynamics. This knowledge is essential for operating effectively in complex business realities, such as corporate groups, and is useful both for working in business management and in accounting and business consulting.
At the end of the course, students will be able to:
Knowledge:

Describe in detail the historical and economic reasons that led to the emergence of business groups and the need for consolidation.
Understand the different consolidation theories and the criteria for identifying the group and the consolidation area in economic-business doctrine and regulations (Italian and international).
Identify the different types of elimination of investments (total, partial, direct, indirect) and the implications of consolidation differences (positive and negative) at the date of acquisition and at a later date.
Know the methodologies for eliminating reciprocal receivables and payables, distinguishing between matching, in-transit, and those referring to different dates.
Recognize the mechanisms for eliminating internal profits.
Explain how to represent transactions with minority shareholders in the consolidated financial statements.
Illustrate the notion and function of the consolidated Cash Flow Statement and the structure of reconciliation statements and changes in shareholders' equity.

Skills/Abilities:

Apply consolidation principles and techniques for the practical preparation of consolidated financial statements, including managing acquisitions of additional shares or control through capital increases (e.g., Joint Ventures).
Correctly perform consolidation adjustments to eliminate intra-group transactions related to receivables, payables, and internal profits, knowing how to manage different cases.
Prepare the consolidated Cash Flow Statement and reconciliation statements and changes in shareholders' equity, starting from the financial statements of individual group companies.
Analyze and interpret consolidated values, identifying the reasons for poor significance in the presence of profoundly different business realities.
Solve practical issues related to accounting and representation of transactions with minority shareholders in the consolidated context.

Autonomy of judgment and learning ability:

Critically evaluate the economic and financial implications of business aggregations and the consolidation process, developing autonomy of judgment in choosing the most appropriate methodologies.
Collaborate effectively in teams for the analysis of complex consolidation cases, demonstrating problem-solving skills and communication of financial results.
Autonomously stay updated on regulatory developments and international best accounting practices related to consolidated financial statements, demonstrating continuous learning ability.