About this course
When investors buy shares of a parent, they buy into the group and want to know how the group is performing, which can be different from the parent’s performance. In consolidated financial statements, the assets, liabilities, equity, income, expenses and cash flows of the parent and its subsidiaries are aggregated and presented as one set of accounts.
This course helps you understand the main concepts related to full consolidation. You’ll cover the basic concepts of consolidation and the three basic steps of consolidation using practical examples and interim tests.
By completing this course, you will understand:
- the purpose of consolidation and when it needs to be carried out
- the definition of main concepts related to consolidation, such as parent, subsidiary, group, control, non-controlling interest
- what types of adjustments need to be made in consolidation
- how to calculate non-controlling interest
- how to calculate goodwill or gain on bargain purchase
- how to eliminate intra-group transactions and balances
- the basic steps of preparing a consolidated statement of financial position and consolidated statement of total comprehensive income.
Key information
- Designed for finance and accounting experts who are familiar with fundamental (local) accounting and reporting processes.
- CPD certificate is available upon successful completion of the course.
- Part of an e-learning series developed by PwC Academy.
