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2020/2021

Financial Accounts Consolidation

Code: 102100 ECTS Credits: 6
Degree Type Year Semester
2501231 Accounting and Finance OT 4 0
The proposed teaching and assessment methodology that appear in the guide may be subject to changes as a result of the restrictions to face-to-face class attendance imposed by the health authorities.

Contact

Name:
Francesc Josep Uroz Felices
Email:
FranciscoJose.Uroz@uab.cat

Use of Languages

Principal working language:
catalan (cat)
Some groups entirely in English:
No
Some groups entirely in Catalan:
Yes
Some groups entirely in Spanish:
No

Prerequisites

Thera are no prerequisites for this course. No application.

However, it is recommended to have passed the subjects of Financial Accounting of the Degree in AF.

Objectives and Contextualisation

Context:

 This subject is contextualized together with three other optional subjects within the subject of Advanced Accounting that are taught in the fourth year of the Degree in Accounting and Finance.

 

Objectives:

   Know the content, sense and meaning of the accounts of the groups of companies

   Analyze the different consolidation methods and procedures, the stages and the consolidation process and the correct practices

   Elaborate the financial information related to the groups of companies as well as the consolidated financial statements

   Analyze the rules of presentation and preparation of the consolidated financial statements and the regulatory framework of financial information

Competences

  • Analysing, summarising and assessing information.
  • Demonstrating a comprehension of the different legal, control and solvency standards issued by regulatory bodies affecting the several analysed accounting or financial processes.
  • Demonstrating a comprehension of the functioning of the financial system and the plan of action of various intermediaries, specially banks, saving banks and insurance companies, in order to negotiate effectively.
  • Organising the work, regarding order and planning.
  • Selecting and interpreting the financial information of markets and companies.
  • Students must develop the necessary learning skills to undertake further training with a high degree of autonomy.

Learning Outcomes

  1. Analysing, summarising and assessing information.
  2. Distinguishing financial risks and knowing the instruments and techniques of diversification and coverage.
  3. Identifying concrete financial transactions and financial systems used in the setting of prices.
  4. Organising the work, regarding order and planning.
  5. Prepare financial statements and reports for accounting, fiscal, financial and organizational purposes.
  6. Students must develop the necessary learning skills to undertake further training with a high degree of autonomy.
  7. Use the different criteria for registration and valuation established in the accounting rules.

Content

Topic 1:  Introduction and regulations.

1.1. Economic concentration, a change in the business organization.

1.2. Legal framework: Legislation and regulations.

1.3. The International Accounting Standards in the context of consolidation. Accounting and information systems

 

Topic 2:  Preliminary concepts in the consolidation of financial statements.

2.1. Companies involved in the consolidation.

2.1.1. Dominant society.

2.1.2. Society dominated.

2.1.3. Multigroup company.

2.1.4. Associated company.

2.2. Group of companies, consolidation group and consolidation perimeter.

2.3. Obligation to consolidate.

2.4. Groups of companies dispensed from the obligation to consolidate.

2.5. Objectives, needs and reasons for the consolidated information.

 

Topic 3: Introduction to consolidation methods and procedures and stages.

3.1. The global integration method: Introduction.

3.2. The proportional integration method: Introduction.

3.3. The method of equity method: Introduction.

3.4. Stages of the consolidation process.

3.4.1. Homogenization

3.4.2. Aggregation.

3.4.3. Eliminations.

3.4.4. Formulation of the consolidated annual accounts.

3.5. Comparison of methods: Example.

 

Topic 4: Global integration method.

 4.1. Introduction.

4.2. Elimination of equity investment.

4.2.1. Elimination of equity investment in first consolidation.

4.2.2. Elimination of equity investment in subsequent consolidations.

4.3. Reciprocal eliminations.

4.4. Eliminations of results for internal operations.

4.4.1. Eliminations of results for internal stock operations.

4.4.2. Eliminations of results for internal fixed assets operations.

4.4.3 Eliminations of results for internal operations of services and internal dividends.

4.4.4. Elimination of results from internal operations of financial assets and acquisition of financial assets of the group from third parties.

4.5. Elimination of equity investment (continued)

4.5.1. Elimination of equity investment with indirect shares.

4.5.2. Elimination of equity investment with reciprocal shares.

 

Topic 5: Proportional integration method.

 5.1. Description of the method

 

Topic 6: Equity method.

6.1. Description of the procedure and homogenization.

6.2. Adjustment derived from the equity investment difference.

6.3. Modification of participation.

6.4. Subsequent consolidations.

6.5. Changes in consolidation methods or procedures.

 

Topic 7: Conversion of annual accounts in foreign currency. Introduction.

 

Topic 8: Consolidated financial statements.

8.1. The consolidated financial statements according to R.D. 1159/2010

8.2. The consolidated financial statements according to international regulations. Examples of cases.

 

Topic 9: Taxation in consolidated profit regime. Introduction.

 

Methodology

 

Teaching will be offered on campus or in an on-campus and remote hybrid format depending on the number of students per group and the size of the rooms at 50% capacity.

 

To achieve the objectives of the course, the following taxonomy of activities will be used:

 

       Directed activity (AD): theoretical and practical classes and resolution of exercises and / or practical cases.

       Supervised activity (AS): assistance to tutorials and realization of cases and exercises according to guidelines and predetermined follow-up.

       Individual autonomous activity (AAI): personal study of the student that involves study of the bibliography, readings of expansion and complementarity, research and information search, visit to entities and / or companies, ...

       Autonomous group activity (AAG): search of data and study of a topic outside the content of the class sessions of the subject with written presentation

 

The proposed teaching methodology may undergo some modifications according to the restrictions imposed by the health authorities on on-campus courses.

Activities

Title Hours ECTS Learning Outcomes
Type: Directed      
class sessions (theory) 33 1.32 1, 5, 7, 3
practical classes and case resolution 13 0.52 5, 7
Type: Supervised      
tutorial of case studies and group work 20 0.8 1, 4, 6
Type: Autonomous      
study, research, readings, consultation, elaboration of work, study of memory, ... 80.5 3.22 1, 2, 3, 4, 6

Assessment

The evaluation of the subject is based on 5 types of activities: 

- Attendance and participation in class (10% of the final grade).

- Realization and presentation of a global consolidation exercise or several partial and short exercises. The exercise or exercises must be done individually. (10% of the final grade).

- A partial test (exam) type test that can include theoretical questions and other more practical content (20% of the final grade).

- A final test (exam) with a consolidation exercise with various eliminations and adjustments for internal and other operations (40% of the final grade).

- The preparation and presentation of a monographic work on a subject not included in the syllabus of the subject or on the study of a Consolidated Report (of a group of companies). It can be done in groups of 2 to 4 people and of a minimum length. (20% of the final grade).

 

 To pass the subject, the different types of evaluation have to be overcome. That is to say, a minimum of 5 must be obtained in the set of the evaluation tests or exams. The qualification of the activities can be compensated from a grade of 3.5 with the grades obtained in the other activities.

All students are required to perform the evaluation activities. If the student's grade is 5 or higher, the student passes the course and it cannot be subject to further evaluation. If the student grade is less than 3.5, the student will have to repeat the course the following year. Students who have obtained a grade that is equal to or greater than 3.5 and less than 5 can take a second chance exam. The lecturers will decide the type of the second chance exam. When the second exam grade is greater than 5, the final grade will be a PASS with a maximum numerical grade of 5. When the second exam grade is less than 5, the final grade will be a FAIL with a numerical grade equal to the grade achieved in the course grade (not the second chance exam grade).

A student who does not perform any evaluative task is considered “not evaluable”, therefore, a student who performs a continuous assessment component can no longer be qualified with a "not evaluable".

Calendar of evaluation activities

The dates of the evaluation activities (midterm exams, exercises in the classroom, assignments, ...) will be announced well in advance during the semester.

The date of the final exam is scheduled in the assessment calendar of the Faculty.

"The dates of evaluation activities cannot be modified, unless there is an exceptional and duly justified reason why an evaluation activity cannot be carried out. In this case, the degree coordinator will contact both the teaching staff and the affected student, and a new date will be scheduled within the same academic period to make up for the missed evaluation activity." Section 1 of Article 115. Calendar of evaluation activities (Academic Regulations UAB). Students of the Faculty of Economics and Business, who in accordance with the previous paragraph need to change an evaluation activity date must process the request by filling out an Application for exams' reschedulehttps://eformularis.uab.cat/group/deganat_feie/application-for-exams-reschedule

 

Grade revision process

After all grading activities have ended, students will be informed of the date and way in which the course grades will be published. Students will be also be informed of the procedure, place, date and time of grade revision following University regulations.

 

Retake Process

"To be eligible to participate in the retake process, it is required for students to have been previously been evaluated for at least two thirds of the total evaluation activities of the subject." Section 3 of Article 112 ter. The recovery (UAB Academic Regulations). Additionally, it is required that the student to have achieved an average grade of the subject between 3.5 and 4.9.

The date of the retake exam will be posted in the calendar of evaluation activities of the Faculty. Students who take this exam and pass, will get a grade of 5 for the subject. If the student does not pass the retake, the grade will remain unchanged, and hence, student will fail the course.

 

Irregularities in evaluation activities

In spite of other disciplinary measures deemed appropriate, and in accordance with current academic regulations, "in the case that the student makes any irregularity that could lead to a significant variation in the grade of an evaluation activity, it will be graded with a 0, regardless of the disciplinary process that can be instructed. In case of various irregularities occur in the evaluation of the same subject, the final grade of this subject will be 0". Section10 of Article 116. Results of the evaluation. (UAB Academic Regulations).

 

The proposed evaluation activities may undergo some changes according to the restrictions imposed by the health authorities on on-campus courses.

 

 

Assessment Activities

Title Weighting Hours ECTS Learning Outcomes
Attendance and participation in class 10% 0 0 1, 2, 7, 6
Final test 40% 2 0.08 1, 5, 7
Individual exercises (global or partial and short) 10% 0 0 1, 4, 6
Partial test 20% 1.5 0.06 1, 5, 7
Team work 20% 0 0 1, 3, 4, 6

Bibliography

Bibliography

 

BASIC TEXTS:

 

ÁLVAREZ, Sixto y CORONA, Enrique (2016): Cuentas anuales Consolidadas. Ediciones Pirámide. Madrid.

 GÓMEZ, Francesc y MOYA, Soledad (2012): Consolidación de los estados financieros. Editorial UOC. Barcelona.

  

COMPLEMENTARY TEXTS:

 

BONED, José Luis y ANGLA, Jesús José (2011): Consolidación de estados financieros. Ed. Profit Editorial. ACCID. Barcelona.

PULIDO, Antonio (2010): Combinaciones de negocios y preparación de cuentas anuales consolidadas . Ed.  Garceta Grupo Editorial. Madrid.

MARRA, A, PRENCIPE, A.  and  CALLIMBERTI (2013):  Consolidation. Preparing and Understanding Consolidated Financial Statements under IFRS.  McGraw-Hill Education. London.

 

LEGAL AND PROFESSIONAL TEXTS:

 

Artículos 42 a 49 del Código de Comercio.

ESPAÑA. LEY 16/2007 de 4 de julio de Reforma y adaptación de la legislación mercantil en material contable para su armonización internacional con base en la normativa de la Unión Europea. BOE número 160 de 5 de julio de 2007 páginas 29016-29047.

ESPAÑA. REAL DECRETO 1159/2010 de 17 de septiembre, por el que se aprueban las normas para la formulación de las cuentas anuales consolidadas (BOE de 24-9-10).

ESPAÑA. REAL DECRETO 1514/2007, de 16 de noviembre, por el que se aprueba el Plan General de Contabilidad (BOE Nº 278 de 20 de noviembre de 2007).

ESPAÑA. REAL DECRETO 1515/2007, de 16 de noviembre, por el que se aprueba el Plan General de Contabilidad de Pequeñas y Medianas Empresas y los criterios contables específicos para microempresas (BOE Nº 279 de 21 de noviembre de 2007).

ESPAÑA. Real Decreto Legislativo 1/2010, de 2 de julio, por elque se aprueba el texto refundido de la Ley de Sociedades de Capital.

ESPAÑA. Real Decreto 602/2016 de 2 de diciembre (BOE dia 17-12-16) por el que se modifica el Plan General de Contabilidad aprobado por Real Decreto 1514/2007, de 16 de noviembre, el Plan General de Contabilidad de Pequeñas y Medianas Empresas aprobado por Real Decreto 1515/2007, de 16 de noviembre, las Normas para la Formulación de Cuentas Anuales Consolidadas aprobadas por Real Decreto 1159/2010, de 17 de septiembre, y las Normas de Adaptación del Plan General de Contabilidad a las entidades sin fines lucrativos aprobadas por el Real Decreto 1491/2011, de 24 de octubre.

I.A.S.B. (2011): "Normas Internacionales de Información Financiera. NIIF" "International Financial Reporting Standards. IFRS". IASB.

I.A.S.B. Norma Internacional de Contabilidad Nº 27: "Estados financieros separados".

I.A.S.B. Norma Internacional de Contabilidad Nº 28: "Inversiones en entidades asociadas y negocios conjuntos".

I.A.S.B. Norma Internacional de Contabilidad Nº 31: "Información financiera relativa a las participaciones en negocios conjuntos".

I.A.S.B. Norma Internacional de Información Financiera "IFRS / NIIF 3: "Combinaciones de Negocios". IASB.

I.A.S.B. (2011) Norma Internacional de Información Financiera "IFRS / NIIF 10: Consolidated Financial Statements / Estados Financieros consolidados". IASB.

I.A.S.B. (2011) Norma Internacional de Información Financiera "IFRS / NIIF 11: Join Arrangements / Acuerdos conjuntos". IASB.

I.A.S.B. (2011) Norma Internacional de Información Financiera "IFRS / NIIF 12: Disclosure of Interests in Other Entities / Revelaciones sobre participaciones en otras entidades". IASB.

 

ONLINE RESOURCES:

http://eur-lex.europa.eu/legal-content/ES/TXT/?uri=URISERV:l26040     

Normas internacionales de Contabilidad / NIIF UE

http://accid.org     

Associació Catalana de Comptabilitat i Direcció

http://www.cnmv.es

Comisión Nacional del Mercado de valores

http://www.icac.meh.es

Instituto de Contabilidad y Auditoría de Cuentas

http://www.bde.es

Banco de España

http://www.aeca.es

Asociación Española de Contabilidad y Administración de Empresas

http://www.iasb.org

International Accounting Standards Board

  

UAB Publications Virtual Campus of the subject