This advanced course provides comprehensive coverage of accounting for business combinations and the preparation of consolidated financial statements for corporate groups. Participants will master the complex accounting rules governing acquisitions, mergers, and consolidated reporting for parent-subsidiary relationships. The program covers acquisition method accounting, goodwill calculation, non-controlling interests, and the elimination of intercompany transactions. Through detailed case studies and consolidation exercises, attendees will develop the expertise to handle complex group accounting scenarios and prepare accurate consolidated financial statements.
Consolidated Financial Statements and Business Combinations
Financial Management and Accounting
October 25, 2025
Introduction
Objectives
Key learning objectives for this course include:
- Master acquisition method accounting for business combinations
- Prepare consolidated financial statements for corporate groups
- Account for goodwill and bargain purchase situations
- Handle non-controlling interest calculations and presentation
- Eliminate intercompany transactions and balances
- Account for step acquisitions and piecemeal ownership
- Understand consolidation of special purpose entities
- Prepare consolidation worksheets and working papers
- Apply consolidation requirements under different accounting frameworks
Target Audience
- Financial Reporting Managers
- Consolidation Accountants
- Corporate Controllers
- Public Accounting Professionals
- Financial Analysts in corporate groups
- M&A Accounting Specialists
- Group Finance Managers
- Accounting Managers in multinational companies
Methodology
- Complex business combination case studies
- Consolidation worksheet exercises
- Goodwill calculation simulations
- Intercompany elimination practice
- Group discussions on consolidation challenges
- Individual consolidation projects
- Professional standard analysis
Personal Impact
- Enhanced technical accounting expertise
- Improved complex consolidation skills
- Stronger analytical and problem-solving abilities
- Increased confidence in group accounting
- Better understanding of M&A accounting
- Professional growth in corporate reporting
Organizational Impact
- Improved accuracy in consolidated financial reporting
- Enhanced compliance with complex accounting standards
- Better decision-making for corporate acquisitions
- Reduced risk of consolidation errors
- Stronger investor confidence in group results
- Improved transparency in corporate structure reporting
Course Outline
Business Combinations Fundamentals
Acquisition Method- Business combination definition and scope
- Acquisition method application
- Identifying the acquirer
- Determining acquisition date
- Purchase consideration calculation
- Contingent consideration accounting
- Acquisition-related costs treatment
- Bargain purchase situations
Goodwill and Assets Acquired
Goodwill Calculation- Goodwill recognition and measurement
- Goodwill impairment testing
- Negative goodwill accounting
- Goodwill allocation to reporting units
- Identifiable asset recognition criteria
- Fair value measurement principles
- Intangible asset identification
- Contingent assets and liabilities
Consolidation Principles
Control Concepts- Control definition and assessment
- Power over relevant activities
- Variable returns exposure
- Link between power and returns
- Subsidiary identification
- Special purpose entities
- Investment entities exception
- Consolidation exemptions
Consolidation Techniques
Initial Consolidation- Consolidation worksheet preparation
- Investment elimination entries
- Equity method adjustments
- Non-controlling interest calculation
- Intercompany sales and profits
- Intercompany receivables and payables
- Intercompany dividend elimination
- Unrealized profit calculations
Complex Consolidation Scenarios
Step Acquisitions- Piecemeal acquisition accounting
- Previously held equity interest
- Control achieved in stages
- Goodwill calculation in steps
- Consolidation of foreign operations
- Currency translation adjustments
- Hyperinflationary economies
- Functional currency determination
Disclosures and Special Topics
Disclosure Requirements- Business combination disclosures
- Consolidated statement disclosures
- Non-controlling interest presentation
- Segment information consolidation
- Reverse acquisitions accounting
- Common control transactions
- Demergers and spin-offs
- Consolidation of not-for-profit entities
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