Workshop Overview

This workshop provides a comprehensive understanding of the basic consolidation

process under financial reporting standards. Participants will learn how to assess

control, determine acquisition dates, and measure consideration transferred, including

cash, deferred payments, share issues, and contingent considerations. The session

covers key steps such as identifying fair values of assets and liabilities, measuring non-

controlling interests, and calculating goodwill (both positive and negative). Additionally,

participants will explore eliminations for intragroup transactions, including sales, fixed

asset transfers, dividends, and leases, as well as handling foreign currency translation

and differing financial year-ends or accounting policies between parent and subsidiary

companies. Practical case studies and journal entries for simple group structures will

reinforce learning.

Event Outline:

Basic Consolidation

• Assess whether the investor has control over the investee, i.e. whether the investee

is a subsidiary

• Determine acquisition date

• Determine consideration transferred:

o Casho Deferred cash payable

o Other assets

o Share issues

o Contingent consideration

• Determine fair value of identifiable assets acquired and liabilities assumed

• Determine the initial measurement of non-controlling interests:

o Fair value method (full method)

o Proportionate share of net assets method (partial method)

• Determine goodwill

o Positive goodwill

o Negative goodwill

• Elimination of intragroup sales transactions

• Determination of profit for non-controlling interests

• Elimination of unrealised profits in intragroup sale of inventories

o Upstream sales

o Downstream sales

o Determination of unrealised profit for non-controlling interests

• Elimination of unrealised profits in intragroup transfer of fixed assets

o Non-depreciable fixed assets

o Depreciable fixed assets

• Elimination of dividend from subsidiary to parent

o Fully owned subsidiary

o Partially owned subsidiary

• Elimination of intragroup lease transactions

o Finance lease

o Operating lease

• Translation of subsidiary’s financial statements in foreign currency

o Translation of income statement

o Translation of statement of financial position

o Translation of statement of cash flows

• Addressing the issue of a subsidiary with a different financial year end from the

group

• Addressing the issue of a subsidiary with different accounting policies from the

group

Cases involving a simple group (i.e. consisting of a parent and a subsidiary) and journal

entries will be used to illustrate the consolidation process.Key Takeaways

By the end of this workshop, participants will:

1. Master the step-by-step consolidation process, from assessing control and

measuring consideration to calculating goodwill and non-controlling interests.

2. Apply elimination techniques for intragroup transactions, including sales, fixed

asset transfers, dividends, and leases, ensuring accurate group financial reporting.

3. Resolve common consolidation challenges, such as foreign currency translation,

differing financial year-ends, and accounting policy misalignments between parent and

subsidiary.

4. Gain hands-on expertise through real-world case studies and journal entries,

reinforcing practical application in simple group structures.

Who Should Attend?

This workshop is meticulously designed for professionals who play a role in financial

consolidation, reporting, or analysis, including:

- Accountants & Financial Controllers responsible for preparing or auditing

consolidated financial statements.

- Auditors & Assurance Professionals who review group accounts and need to verify

consolidation adjustments.

- Corporate Finance & M&A Teams involved in acquisitions, disposals, or group

restructuring, requiring a deep grasp of consolidation mechanics.

- Financial Analysts & Investment Professionals who interpret consolidated reports

to assess group performance and valuation.

- Finance Managers & Group Reporting Specialists overseeing multi-entity financial

statements under IFRS or similar frameworks.

- Regulatory & Compliance Officers ensuring adherence to financial reporting

standards in complex group structures.