Business Combinations and Consolidated Statements

 Financial Accounting.

The teaching methodology used is theoretical-practical and interactive. The program contents are taught through a theoretical exposition accompanied by the presentation of a set of slides prepared by the teacher and made available to students. During the theoretical exposition, student participation is encouraged by asking questions, with the aim of increasing interaction and stimulating reasoning and critical thinking. This theoretical exposition is also accompanied by the discussion and resolution of practical examples, in order to capture students’ constant interest in the subject taught. It is intended that, for each topic of the program, a theoretical presentation will be made, illustrated with examples of practical application. Students are encouraged to actively participate in solving practical cases, either individually or in small groups, which is very important because it allows them to put theoretical concepts into practice.

This curricular unit’s main objective is to provide students with a set of knowledge that allows them to understand the accounting concepts and procedures related to financial investments, the concentration of business activities and the consolidation of financial statements.

After successfully completing this curricular unit, students should: (i) know how to account for financial investments in subsidiaries, associates and joint ventures; (ii) what is a concentration of business activities and the accounting method to apply; (iii) understand the importance and usefulness of consolidated financial statements for making economic decisions; (iv) define the consolidation perimeter and identify situations where the presentation of consolidated accounts is mandatory and exempt; (v) understand the methods and procedures for consolidating financial statements.

1. Financial Investments

1.1. Introduction

1.2. Accounting Classification of Financial Investments

1.3. Control, Significant Influence and Joint Control

1.4. Financial Investment Accounting Methods

1.5. Goodwill

1.6. NCRF 13 – Interests in Joint Ventures and Investments in Associates

1.7 Equity Method: accounting

2. Merger Companies

2.1. Fusion

2.1.1 Introduction

2.1.2 Concept

2.1.3 Objectives/advantages

2.1.4 Disadvantages

3. Concentration of Business Activities

3.1. Introduction

3.2. NCRF 14 – Business Activities Concentration

3.3. Purpose and scope

3.4. Accounting method – purchase method

3.4.1 Identify an acquirer

3.4.2 Determine the acquisition date

 3.4.3 Measure the cost of CAE

3.4.4 Allocate, on the acquisition date, the cost of the CAE to the assets acquired and liabilities and contingent liabilities assumed

4. Consolidation of Financial Statements

4.1 Introduction to account consolidation:

4.2 Group concept

4.3 Control concept

4.4 Concept of account consolidation

4.5 Consolidation perimeter

4.6 Mandatory preparation of consolidated accounts

4.7 Exemption from preparing consolidated accounts

4.8 Consolidation deletion

4.9. Operations prior to consolidation:

4.10 accounting homogenization

4.11 monetary conversion: NCRF 23 – The effects of changes in exchange rates

4.12. Consolidation methods:

4.13 Integral method (NCRF 15)

4.14 Proportional method (NCRF 13)

4.15 Equity equivalence method (NCRF 13)

• - Exam - 60.0%
• - 2 scientific articles - analysis and presentation in class - 40.0%

NAO