Session 2’s focus is on bringing practicality to the requirements around consolidation, specifically in terms of the consolidation process and the journal entries one would need to pass, in order to combine a parent and subsidiary’s financial statements.
Other types of investments will also be looked at, namely investments in associates and joint ventures. It is vital to establish what the accounting requirements are, in theory, before looking at the practical accounting entries that are to be followed in an investor’s books, as part of preparing a set of financial statements

Content

Session 2:

• Section 9: Consolidated and Separate Financial Statements
• Section 19: Business Combinations and Goodwill
• Section 14: Investments in Associates
• Section 15: Investments in Joint Ventures.

Objectives

We seek to empower you as an accountant in finance as well as auditor/reviewer in public services, by:

• Identifying when a business is required/permitted to apply the requirements of a section
• Establishing what the requirements are / guidance are/is per section, relative to:
  • Definitions
  • Recognition
  • Measurement 

• Discussing any accounting policy elections available for a section

• Identifying the disclosure requirements and where possible, providing illustrative examples.