Course detail

Consolidated Financial Statements

FP-FkuzPAcad. year: 2024/2025

The course is focused on the issue of producing the consolidated financial statements. Students gain a knowledge of consolidating a group of enterprises, of methods of consolidating financial statements and gain the skills necessary for the preparation of the consolidated financial statements.

Language of instruction

Czech

Number of ECTS credits

5

Mode of study

Not applicable.

Guarantor

prof. Ing. Miloš Tumpach, Ph.D.

Department

Institute of Finances (ÚF)

Entry knowledge

The following are prerequisites for the consolidation of financial statements course:
- financial accounting knowledge and skills
- a capacity to prepare individual financial statements
- knowledge of the information value of each part of individual financial statements.

Rules for evaluation and completion of the course

A condition for obtaining credit is solving a summary example focused on the preparation of a consolidated balance sheet and consolidated profit and loss statement according to the rules of Czech legislation. The assessment is 0 - 20 points, the student must obtain at least 10 points.

Students studying under ISP have the same conditions (except for participation).

 

The course is completed by an examination, which is in written form. The overall classification of the examination is identical to the ECTS classification scale.
The examination consists of examples and questions with a total mark of 0-80 points. Examples are marked with 65 points, questions with 15 points.

To pass the exam, 50% of the points are required. The credit score is included in the overall course grade.

Students studying under the ISP follow the same procedure as other students in the exam.


Participation in the class is monitored. Apologies are governed by SER BUT.

A condition for obtaining credit is solving a summary example focused on the preparation of a consolidated balance sheet and consolidated profit and loss statement according to the rules of Czech legislation. The assessment is 0 - 20 points, the student must obtain at least 10 points.

Students studying under ISP have the same conditions (except for participation).

Translated with www.DeepL.com/Translator (free version)

Aims

The course objectives are:
- to understand the logic of processing accounting outputs of an ownership-linked group
- to understand the consolidated financial statements
- to know and be able to work with the methods of preparing consolidated financial statements


Students gain a knowledge of groups of enterprises coming under the consolidated financial statement, a theoretical knowledge of the methods of consolidation and the basic practical skills needed for producing consolidated financial statements.

Study aids

Not applicable.

Prerequisites and corequisites

Not applicable.

Basic literature

ČÚS pro podnikatele č.003 Odložená daň, č.011 Operace s podnikem, č.020 Konsolidace (CS)
FEDOROVÁ, A. Průvodce studiem předmětu konsolidace účetní závěrky. VUT v Brně, 2017. (CS)
Nařízení Komise (ES) č. 1126/2008 ze dne 3. listopadu 2008 , kterým se přijímají některé mezinárodní účetní standardy v souladu s nařízením Evropského parlamentu a Rady (ES) č. 1606/2002 Dostupné na: https://eur-lex.europa.eu/legal-content/CS/TXT/PDF/?uri=CELEX:02008R1126-20210101&from=EN (CS)
vyhláška č.500/2002Sb., kterou se provádějí některá ustanovení zákona o účetnictví (CS)
zákon č.593/1991Sb., o účetnictví (CS)
Zelenka V., Zelenková, M. (2018). Konsolidace účetních výkazů. Principy a praktické aplikace. Praha : Ekopress. (CS)

Recommended reading

Clendon, T. (2013). A student´s guide to Group Accounts. Second Edition. Kaplan Publishing (EN)
JONÁŠ, R., LOJA, R. Konsolidovaná účetní závěrka podle českých předpisů v příkladech. Praha: VOX. 2016. ISBN 978-80-87480-52-6. (CS)
VAŠEK, L., HORNICKÁ, R. Konsolidace ekvivalence majetkových účastí podle IFRS. Praha: Wolters Kluwer, 2013. ISBN 978-80-7357-969-2. (CS)

Classification of course in study plans

  • Programme MGR-UFRP Master's 1 year of study, summer semester, compulsory

Type of course unit

 

Lecture

13 hod., optionally

Teacher / Lecturer

prof. Ing. Miloš Tumpach, Ph.D.

Syllabus

The course consists of the common part, part A and part B.
Common part: Economic rationale of the consolidation. Consolidation methods: full method, proportionate method. Equity method.

Part A: Consolidate financial statements (CFS) in accordance with the Czech legislation
Scope of the CFS, its content and the legal framework for consolidation in Czech Republic.
Consolidated group in accordance with the Czech accounting legislation. Deficit or surplus determined at the acquisition and their measurement as of the date of the acquisition. Impact of the deficit and surplus on profit or loss.
Impact of their application consolidation methods on the financial statements covering the first and the second year of consolidation.
Compilation of the CFS – presentation of used schedules and procedures.
Part B: Consolidated financial statements (CFS) in accordance with the IFRS
Obligatory preparation of the CFS in accordance with the IFRS and related exemptions.
Different levels of engagement of an investor; subsidiaries and affiliated companies. Concept of control and various ways of its form and acquisition. General requirements for application of the same accounting policies and accounting periods by members of an consolidate group.
Acquisition method: determination of the date of the acquisition of the control, revaluation of assets and liabilities to fair value. Different ways of recognition of assets and liabilities in individual and consolidated financial statements (e. g. contingent liabilities of subsidiaries for which the fair value could be determined, investment properties leased out to other member of the group, other intragroup transaction involving the sale and provision of services). Measurement of consideration provided by an acquirer. Measurement of non-controlling interest, determination of goodwill / gain from a bargain purchase.
Elimination of the impact of the intragroup transactions between parent company, subsidiaries and affiliated companies. Accounting for the post-acquisition retained earnings and non-controlling interests for acquisition realised after the beginning of an accounting period. Accounting for differences related to different classification, recognition or measurement of assets and/or liabilities in CFS and FS of member of a group, including the revaluation of assets and/or liabilities to fair value.
Accounting for impairment of goodwill in accordance with IAS 36
Impact of the loss of control in subsidiary on the consolidate and individual financial statements of a parent
Compilation of the CFS in accordance with the IFRS for the group consisting from the parent company, a subsidiary and an affiliate.

Exercise

26 hod., compulsory

Teacher / Lecturer

prof. Ing. Miloš Tumpach, Ph.D.

Syllabus

The course consists of the common part, part A and part B.
Common part: Economic rationale of the consolidation. Consolidation methods: full method, proportionate method. Equity method.

Part A: Consolidate financial statements (CFS) in accordance with the Czech legislation
Scope of the CFS, its content and the legal framework for consolidation in Czech Republic.
Consolidated group in accordance with the Czech accounting legislation. Deficit or surplus determined at the acquisition and their measurement as of the date of the acquisition. Impact of the deficit and surplus on profit or loss.
Impact of their application consolidation methods on the financial statements covering the first and the second year of consolidation.
Compilation of the CFS – presentation of used schedules and procedures.
Part B: Consolidated financial statements (CFS) in accordance with the IFRS
Obligatory preparation of the CFS in accordance with the IFRS and related exemptions.
Different levels of engagement of an investor; subsidiaries and affiliated companies. Concept of control and various ways of its form and acquisition. General requirements for application of the same accounting policies and accounting periods by members of an consolidate group.
Acquisition method: determination of the date of the acquisition of the control, revaluation of assets and liabilities to fair value. Different ways of recognition of assets and liabilities in individual and consolidated financial statements (e. g. contingent liabilities of subsidiaries for which the fair value could be determined, investment properties leased out to other member of the group, other intragroup transaction involving the sale and provision of services). Measurement of consideration provided by an acquirer. Measurement of non-controlling interest, determination of goodwill / gain from a bargain purchase.
Elimination of the impact of the intragroup transactions between parent company, subsidiaries and affiliated companies. Accounting for the post-acquisition retained earnings and non-controlling interests for acquisition realised after the beginning of an accounting period. Accounting for differences related to different classification, recognition or measurement of assets and/or liabilities in CFS and FS of member of a group, including the revaluation of assets and/or liabilities to fair value.
Accounting for impairment of goodwill in accordance with IAS 36
Impact of the loss of control in subsidiary on the consolidate and individual financial statements of a parent
Compilation of the CFS in accordance with the IFRS for the group consisting from the parent company, a subsidiary and an affiliate.