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About the seminar (Module 1)
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Preparation of Group Financial Statements poses one of the most challenging accounting tasks faced by practicing accountants and the technical rules of the standards are complex.
The rules in FRS 103 Business Combinations relating to identifying acquirer, determining cost of business combination and computation of ‘goodwill’ and ‘access’ are examined carefully with hands-on examples. Once business combination is initially completed the rules on subsequent changes to ‘goodwill’ have to be monitor with due diligent. Thereafter, the preparation of group financial statements will follow if it results in parent and subsidiary relationship. Where an investment in an entity did not give the investor control over it, this may give rise to investor and associate relationship or venturer and jointly control entity relationship. The preparation of these financial statements poses considerable technical challenges to practicing accountants.
There are two main objectives in this seminar. First is to focus on issues arising in business combination. It provides detailed analysis of the technical requirements of FRS 103 as well as current practices. This is followed by examining the technical contents of FRS 27, FRS 28 and IAS 31, the seminar explains the principles and methodologies of consolidation methods, equity method and proportionate consolidation method by using easy to understand mini case studies. It also highlights the contemporary consolidation techniques.
Outline
.............................................................................................................................................................................. FRS103 Business Combinations
Scope
Identifying acquirer
Accounting for cost of business combinations
Accounting for contingent considerations
Acquiree’s identifiable assets and liabilities
Handling contingent liabilities of acquiree
Handling "goodwill" and "bargain purchase"
Initial accounting determined provisionally and its subsequent adjustments
FRS27 Consolidated and Separate Financial Statements
Separate financial statements: Accounting for investments in subsidiaries, associates and jointly controlled entities in the separate financial statements of the parent and investors
Choice of accounting policies: Cost or FRS39
Impairment implications
Presentation of consolidated financial statements
Scope of consolidate financial statements
Consolidation procedures
Reporting dates (coterminous and non-coterminous)
Intercompany balances and transactions (including unrealized profits)
Handling non-controlling interest
Accounting for subsidiary held for sale
FRS28 Investments in Associates
Scope
Determining significant influence
Application of the equity method
Transactions and balances with associates
Impairment losses
Treatment of 'goodwill' and 'bargain purchase' on date of acquisition
IAS 31 Interest in Joint Ventures
Identifying forms of joint venture
Determining joint control
Proportionate consolidation techniques
Who should attend
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