Accounting for Business Groups

The teaching methodology presented is consistent with the assessment method and the learning objectives.
Throughout the semester, the teacher calls for continuous study of the subjects taught and draws attention to the importance of attending
classes, as this is the only way the student can gather the necessary skills to obtain final approval for this curricular unit. Students are also
reminded of the importance of resolving exercises done in class at home. The teacher is always available to answer students’ questions
and constantly encourages students who show interest and desire to learn.
In the final exam, students are faced with theoretical and practical questions, which allow the teacher to assess whether the skills
demonstrated by the student in solving the test meet the learning objectives of this curricular unit. Students who opt for continuous
assessment, in addition to being evaluated by a final exam, do theoretical work with practical application of one of the program’s themes,
which allows them to delve deeper into the subjects taught and analyze a real situation of business concentration

This curricular unit’s main objective is to provide students with a set of knowledge that allows them to understand 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 and apply the methods and
procedures for consolidating financial statements.

1. Financial Investments
1.1. Accounting Classification of Financial Investments
1.2. Control, Significant Influence and Joint Control
1.3. Financial Investment Accounting Methods
1.4. Goodwill
1.5 Equity Method
2. Merger and Spin-off of Companies
2.1. Fusion
2.1.1 Concept
2.1.2 Objectives/advantages
2.1.3 Disadvantages
2.1.4 Merger by incorporation: share exchange ratio
2.1.5 Steps in the merger process
2.2. Spin-off
2.2.1 Concept and modalities
2.2.2 Conditions
2.2.3 Accounting
2.2.4 Phases of the spin-off operation
3. Concentration of Business Activities
3.1 Objective and scope
3.2 Accounting method – purchase method
4. Consolidation of Financial Statements
4.1 Concepts: group, control; account consolidation
4.2 Consolidation perimeter
4.3 Mandatory and Exemption from preparing consolidated accounts
4.4. Operations prior to consolidation:
4.5. Consolidation methods: full; proportional; equity

NAO