Preparing Consolidated Financial Statement - Workshop 2018

The workshop will introduce the concept and standards of consolidated financial statements. Business combination, types of investment and the relevant accounting treatments will be covered over two workshops including investment in subsidiary, associate and joint venture.

Key topics covered:

Session 1 (12 March)

Business Combination (HKFRS 3)

  • Identifying a business combination
  • Accounting treatment for business combination – Acquisition method
  • Control concept and potential voting rights
  • Reverse acquisition

Consolidation Framework (HKFRS 10, 11 and 12)

  • Investments in subsidiary, associate and joint ventures (joint arrangements)
  • Accounting treatment for subsidiary – full consolidation and consolidation adjustments (recognition of goodwill and fair value adjustments)
  • Disclosures

Session 2 (23 April)

  • Accounting treatment for subsidiary – subsequent adjustments and intra-group transactions and balances elimination
  • Recognition and measurement for Non-Controlling Interest in subsidiary
  • Accounting treatment for associate and joint ventures (joint arrangements) – Equity method
  • Disclosures

Trainer profile:

Kamsuo Wong, MA LLM MBA FCPA(Aust.)

With three Master’s degrees under his belt, Kamsuo Wong, a candidate for a Doctorate degree of Education, is highly regarded as a multi-faceted academic backed by over fifteen years of extensive professional experience in accounting. He is a professional accountant in Hong Kong, United Kingdom and Australia and the member of Hong Kong Institute of Certified Public Accountants (CPA), Chartered Institute of Public Finance and Accountancy (CPFA), and CPA Australia (FCPA). He is also the Expert Council Advisor of International Financial Management Association. He is currently the Assistant Professor of Centennial College (an independent College established by University of Hong Kong), Adjunct Lecturer at a number of universities and tertiary education institutions.



Enjoy 10% savings when you register for any three or more workshops in the Finance for the Future Program 2018.

Enter promo code FUTUREHK18 at checkout.

* The fee paid is non-refundable. Transfers must be advised in writing and received by CPA Australia at least five working days prior to the event date. Transfers can only be made once and are subject to workshops within Finance for the Future Program 2018.

Learning objectives

Session 1

  • Understand the nature of a business combination
  • Explain the basic principles in accounting for a business combination
  • Account for a business combination in the records of the acquirer
  • Recognise and measure the assets acquired and liabilities assumed in a business combination
  • Understand goodwill and gain on a bargain purchase
  • Account for shares acquired
  • Prepare accounting records
  • Subsequent adjustments to the initial accounting for a business combination
  • Outline the disclosures required by IFRS 3
  • Explain the meaning of consolidated financial statements
  • Discuss the meaning and application of the criterion of control
  • Discuss which entities should prepare consolidated financial statements
  • Understand the relationship between a parent and an acquirer in a business combination
  • Explain the differences in disclosure requirements between single entities and consolidated entities
  • Understand the consolidation process
  • Calculation of goodwill

Session 2

  • Consolidation journal entries subsequent to the acquisition date
  • Revaluations in the records of the subsidiary at acquisition date
  • The rationale for adjusting for intragroup transactions (including sale of inventory, non-current assets, services, dividends, and loan)
  • Explain the concept of non-controlling interest (NCI)
  • Explain the effects of the NCI on the consolidation process
  • Calculating the NCI Share of equity
  • Adjusting for the effects of intragroup transactions
  • Explain how the NCI is affected by a gain on bargain purchase
  • Reverse acquisitions
  • Disclosure
  • Explain the nature of associates and joint ventures
  • Discuss the concepts of significant influence and joint control
  • Overview and apply the equity method of accounting
  • Account for associates and joint ventures where these entities incur losses
  • Discuss the use of joint arrangements by companies to structure their business
  • Explain the nature of a joint arrangement and how to classify joint arrangements
  • Explain the accounting undertaken by a joint operation
  • Preparation of journal entries required by a joint operator
  • Discuss the disclosures required in relation to associates and joint ventures


This workshop is suitable for accounting and finance professionals as well as anyone who is interested in gaining knowledge in preparing consolidated financial statement.

3 hours