Advanced Financial AccountingModule Details

Rationale

This course serves as a critical component in the educational journey of students pursuing careers in accounting and finance. By equipping them with in-depth understanding of complex financial reporting practices, particularly focusing on the preparation of consolidated financial statements, the course prepares students to address the intricate challenges inherent in financial reporting and analysis within complex organisational structures. Students will gain proficiency in addressing challenges such as intercompany transactions, investments and acquisitions and will learn to critically analyse financial statements to assess organisational performance both for stand-alone companies and groups.

The aim of the course is to empower students with the expertise necessary to navigate complex financial reporting challenges, particularly focusing on consolidated financial statements, thereby enhancing their ability to critically analyse financial data and assess organisational performance effectively in diverse contexts.

Learning Outcomes

At the end of the course students will be expected to:

(i)    Apply the consolidation procedures on acquisition day when the subsidiary is dissolved or when it remains in business.
(ii)   Prepare consolidated financial statements in the years subsequent to the business combination.
(iii)  Prepare consolidated financial statements when there is minority interest and the parent has gained control during the accounting period.
(iv)  Prepare    consolidated    financial    statements    when    intra-entity    inventory transactions are made.
(v)   Follow the appropriate consolidation process depending on whether the preferred stock is treated like debt or equity.
(vi)  Analyse financial statements of standalone companies and groups.