1) The chapter defines key terms related to consolidation such as control, subsidiary, parent, non-controlling interest, and consolidated financial statements.
2) Assessing control of an investee involves considering its purpose and design, how decisions about relevant activities are made, and who has the ability to direct activities and receive returns.
3) Consolidation procedures require combining like items of the parent and subsidiaries, offsetting the parent's investment, and eliminating intragroup balances and transactions.
Introduction to IPSAS and conceptual frameworkFoluwa Amisu
Detailed and informative introduction to International Public Sector Accounting Standards for the preparation of general purpose financial statements by governments and other public sector entities around the world.
Introduction to IPSAS and conceptual frameworkFoluwa Amisu
Detailed and informative introduction to International Public Sector Accounting Standards for the preparation of general purpose financial statements by governments and other public sector entities around the world.
Prepared by CA Sandesh Mundra - An exhaustive presentation on Consolidation of Accounts covering the Standards - AS 21, AS23 and AS 27 with indepth analysis of the finer aspects involved.
WEEK 5 LECTURE NOTESAnalysis of Financial Statements & Other R.docxcockekeshia
WEEK 5 LECTURE NOTES
Analysis of Financial Statements & Other Reporting Issues
This week we will conclude with the following specific financial reporting topics:
· Inflation - accounting for changing prices.
· Business combinations and consolidated financials.
· Segment reporting.
Historical cost accounting in a period of inflation understates asset values (and related expenses) and overstates income. It ignores the gains and losses in purchasing power caused by inflation that arise from holding monetary assets and liabilities.
Methods of accounting for inflation are
· general purchasing power (GPP) accounting, and
· current cost (CC) accounting.
General Purchasing Power Accounting
· Nonmonetary assets and stockholders’ equity accounts are restated for changes in the general price level.
· Cost of goods sold and depreciation/amortization are based on restated asset values and the net purchasing power gain/loss on the net monetary liability/asset position is included in income.
· Income is the amount that can be paid as a dividend while maintaining the purchasing power of capital.
Current Cost Accounting
· Nonmonetary assets are revalued to current cost.
· Cost of goods sold and depreciation/amortization are based on revalued amounts.
· Income is the amount that can be paid as a dividend while maintaining physical capital.
IAS 29
Deloitte: IAS 29 Financial Reporting in Hyperinflationary Economies applies where an entity's functional currency is that of a hyperinflationary economy. The standard does not prescribe when hyperinflation arises but requires the financial statements (and corresponding figures for previous periods) of an entity with a functional currency that is hyperinflationary to be restated for the changes in the general pricing power of the functional currency.
IAS 29 was issued in July 1989 and is operative for periods beginning on or after 1 January 1990.
IAS 21
Deloitte: IAS 21 The Effects of Changes in Foreign Exchange Rates outlines how to account for foreign currency transactions and operations in financial statements, and also how to translate financial statements into a presentation currency. An entity is required to determine a functional currency (for each of its operations if necessary) based on the primary economic environment in which it operates and generally records foreign currency transactions using the spot conversion rate to that functional currency on the date of the transaction.
IAS 21 was reissued in December 2003 and applies to annual periods beginning on or after 1 January 2005.
IAS 29 requires the use of GPP accounting by firms that report in the currency of a hyperinflationary economy.
IAS 21 requires the financial statements of a foreign operation located in a hyperinflationary economy to first be adjusted for inflation in accordance with IAS 29 before translation into the parent company’s reporting currency.
IFRS 3
Deloitte: IFRS 3 Business Combinations outlines the acco.
B2B payments are rapidly changing. Find out the 5 key questions you need to be asking yourself to be sure you are mastering B2B payments today. Learn more at www.BlueSnap.com.
3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
Building Your Employer Brand with Social MediaLuanWise
Presented at The Global HR Summit, 6th June 2024
In this keynote, Luan Wise will provide invaluable insights to elevate your employer brand on social media platforms including LinkedIn, Facebook, Instagram, X (formerly Twitter) and TikTok. You'll learn how compelling content can authentically showcase your company culture, values, and employee experiences to support your talent acquisition and retention objectives. Additionally, you'll understand the power of employee advocacy to amplify reach and engagement – helping to position your organization as an employer of choice in today's competitive talent landscape.
The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
Discover the innovative and creative projects that highlight my journey throu...dylandmeas
Discover the innovative and creative projects that highlight my journey through Full Sail University. Below, you’ll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
Digital Transformation and IT Strategy Toolkit and TemplatesAurelien Domont, MBA
This Digital Transformation and IT Strategy Toolkit was created by ex-McKinsey, Deloitte and BCG Management Consultants, after more than 5,000 hours of work. It is considered the world's best & most comprehensive Digital Transformation and IT Strategy Toolkit. It includes all the Frameworks, Best Practices & Templates required to successfully undertake the Digital Transformation of your organization and define a robust IT Strategy.
Editable Toolkit to help you reuse our content: 700 Powerpoint slides | 35 Excel sheets | 84 minutes of Video training
This PowerPoint presentation is only a small preview of our Toolkits. For more details, visit www.domontconsulting.com
Understanding User Needs and Satisfying ThemAggregage
https://www.productmanagementtoday.com/frs/26903918/understanding-user-needs-and-satisfying-them
We know we want to create products which our customers find to be valuable. Whether we label it as customer-centric or product-led depends on how long we've been doing product management. There are three challenges we face when doing this. The obvious challenge is figuring out what our users need; the non-obvious challenges are in creating a shared understanding of those needs and in sensing if what we're doing is meeting those needs.
In this webinar, we won't focus on the research methods for discovering user-needs. We will focus on synthesis of the needs we discover, communication and alignment tools, and how we operationalize addressing those needs.
Industry expert Scott Sehlhorst will:
• Introduce a taxonomy for user goals with real world examples
• Present the Onion Diagram, a tool for contextualizing task-level goals
• Illustrate how customer journey maps capture activity-level and task-level goals
• Demonstrate the best approach to selection and prioritization of user-goals to address
• Highlight the crucial benchmarks, observable changes, in ensuring fulfillment of customer needs
VAT Registration Outlined In UAE: Benefits and Requirementsuae taxgpt
Vat Registration is a legal obligation for businesses meeting the threshold requirement, helping companies avoid fines and ramifications. Contact now!
https://viralsocialtrends.com/vat-registration-outlined-in-uae/
Event Report - SAP Sapphire 2024 Orlando - lots of innovation and old challengesHolger Mueller
Holger Mueller of Constellation Research shares his key takeaways from SAP's Sapphire confernece, held in Orlando, June 3rd till 5th 2024, in the Orange Convention Center.
Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
(i.e., industry structure in the language of economics).
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
Premium MEAN Stack Development Solutions for Modern BusinessesSynapseIndia
Stay ahead of the curve with our premium MEAN Stack Development Solutions. Our expert developers utilize MongoDB, Express.js, AngularJS, and Node.js to create modern and responsive web applications. Trust us for cutting-edge solutions that drive your business growth and success.
Know more: https://www.synapseindia.com/technology/mean-stack-development-company.html
2. Definition of key terms (IFRS 10)
• Definition of control: an investor controls an investee when the investor is
exposed, or has rights, to variable returns from its involvement with the
investee and has the ability to affect those returns through its power over the
investee.
• Subsidiary: an entity that is controlled by another entity.
• Parent: an entity that controls one or more entities.
• Power: existing rights that give the current ability to direct the relevant activities.
• Non-controlling interest: equity in a subsidiary not attributable, directly or
indirectly, to a parent.
• Group: a parent and its subsidiaries.
• Consolidated financial statements: the financial statements of a group in which
the assets, liabilities, equity, income, expenses and cash flows of the parent and its
subsidiaries are presented as those of a single economic entity.
By: Mulualem G. AcFn, BDU, 2023
3. Assessing control
When assessing control of an investee, an investor shall consider
The purpose and design of the investee in order to identify the relevant
activities,
How decisions about the relevant activities are made,
Who has the current ability to direct those activities and who receives
returns from those activities.
To determine whether it controls an investee an investor shall assess
whether it has all the following:
a) Power over the investee;
b) Exposure, or rights, to variable returns from its involvement with the
investee; and
c) The ability to use its power over the investee to affect the amount of the
investor’s returns.
By: Mulualem G. AcFn, BDU, 2023
5. A parent shall prepare consolidated financial statements using
uniform accounting policies for like transactions and other events
in similar circumstances.
Consolidation of an investee shall begin from the date the investor
obtains control of the investee and cease when the investor loses
control of the investee.
A parent shall present non-controlling interests in the consolidated
statement of financial position within equity, separately from the
equity of the owners of the parent.
Accounting requirements
By: Mulualem G. AcFn, BDU, 2023
6. If a parent loses control of a subsidiary, the parent:
a) Derecognizes the assets and liabilities of the former subsidiary
from the consolidated statement of financial position.
b) Recognises any investment retained in the former subsidiary and
subsequently accounts for it and for any amounts owed by or to
the former subsidiary in accordance with relevant IFRSs.
c) Recognises the gain or loss associated with the loss of control
attributable to the former controlling interest
Accounting requirements
By: Mulualem G. AcFn, BDU, 2023
7. Accounting requirements
What is to be consolidated?
• If dissolution takes place,
appropriate account balances are
physically consolidated in the
surviving company’s financial
records.
• If separate incorporation is
maintained, only the financial
statement information (not the
actual records) is consolidated.
When does the consolidation take
place?
• If dissolution takes place, a
permanent consolidation occurs at
the date of the combination.
• If separate incorporation is
maintained, the consolidation
process is carried out at regular
intervals whenever financial
statements are to be prepared.
By: Mulualem G. AcFn, BDU, 2023
8. Accounting requirements
How are the accounting records affected?
If dissolution takes place, the surviving company’s accounts are
adjusted to include appropriate balances of the dissolved company.
The dissolved company’s records are closed out.
If separate incorporation is maintained, each company continues to
retain its own records. Using worksheets facilitates the periodic
consolidation process without disturbing the individual accounting
systems.
If a member of the group uses accounting policies other than those
adopted in the consolidated financial statements for like transactions and
events in similar circumstances, appropriate adjustments are made in
preparing the consolidated financial statements.
By: Mulualem G. AcFn, BDU, 2023
9. Consolidation procedures
Consolidated financial statements:
a) combine like items of assets, liabilities, equity, income, expenses and
cash flows of the parent with those of its subsidiaries.
b) offset (eliminate) the carrying amount of the parent’s investment in
each subsidiary and the parent’s portion of equity of each subsidiary
c) eliminate in full intragroup assets and liabilities, equity, income,
expenses and cash flows relating to transactions between entities of the
group (profits or losses resulting from intragroup transactions that are
recognised in assets, such as inventory and fixed assets, are eliminated
in full). Intragroup losses may indicate an impairment that requires
recognition in the consolidated financial statements. IAS 12 Income
Taxes applies to temporary differences that arise from the elimination
of profits and losses resulting from intragroup transactions
By: Mulualem G. AcFn, BDU, 2023
10. Chapter requirements
Reading materials and comprehensive illustrations
IFRS 10 Guideline
Joe Ben Hoyle, Thomas F. Schaefer, Timothy S. Doupnik - Advanced
Accounting 14th Edition-McGraw-Hill (2021), from page 65 to 68,
Pearl Tan, Chu Yeong Lim, Ee Wen Kuah - Advanced Financial Accounting-
McGraw Hill Education (2019), from page 148 to 153
By: Mulualem G. AcFn, BDU, 2023
End of chapter two