Classroom 1 Day
103123040
Accounting for group consolidation is based on the economic entity model as opposed to the previous parent entity model. Gain an in-depth understanding of the changes in accounting standard and concepts resulting from the use of the economic entity model.
Overview
Accounting for group consolidation is based on the economic entity model as opposed to the previous parent entity model. Gain an in-depth understanding of the changes in accounting standard and concepts resulting from the use of the economic entity model.
Key Topics Covered:
Introduction to FRS 110, FRS 103 (revised) and FRS 127 (revised) Principles underlying these revised standards – scope and objectives Post-combination accounting
- Elimination of intercompany transactions
- Concept of elimination of unrealised profits in group situations (upstream and downstream eliminations)
Control redefined under FRS 110
- how to determine control and joint-control
Acquisition accounting
- Identifying a business combination
- Applying acquisition method of accounting for a business combination – fair value adjustments
- Recognising and measuring identifiable assets acquired and the liabilities assumed in a business combination
- Accounting for non-controlling interests (NCI)
- Appropriate consolidation adjustments for a business combination
Step up acquisition
- associate to subsidiary situations
Changes in group structure without loss of control
- transactions between parent and NCI
Changes in group structure with loss of control
- Partial disposals - disposal of a controlling interest but retaining a non-controlling residual interest (eg associate)
Equity method of accounting
- Elimination of unrealised profit
Trainer Profile
Oh Ai Sim
Ms Oh has over 21 years of audit related experience with a big four accounting firm. Her portfolio of clients includes public listed entities and multinational corporations covering the following industries: retailing, manufacturing, trading, property development and construction. She also conducted in-house and client training covering FRS and audit related topics.
Objectives
- apply the underlying principles of business combinations;
- apply the concept changes arising from the economic entity model and the appropriate consolidation adjustments in line with the revised FRS 103 and FRS 110; and
- construct a consolidation worksheet
Audience
This workshop is suitable for Accountants, Financial Managers, Finance Controllers and anyone who is interested in the key SFRS requirements and its application.
Classroom 1 Day
103123040