Consolidation of Accounts

Code:

LGE1638

Acronym:

CC

Subject: 2018/2019 - 2S

Teaching Area:

Accounting

Programmes

Acronym	Study plan	Curriculum Years	ECTS	Contact hours	Total Hours
LGE	Desp. n.º 1049/2008 (alterado aviso n.º9805/2012)	3º	3 ECTS	31,5	80

Hours Effectively Taught

LGE3N

Theoretical-Practical:	21,00
Other:	0,00

LGE3D

Theoretical-Practical:	21,00
Other:	0,00

Teaching - Hours Theoretical-Practical: 1,50 Other: 0,60

Teaching Language

Portuguese

Aims, Skills and Learning Outcomes

DESCRIPTIVE SUMMARY OF CURRICULAR UNIT
The approach to the procedures for drawing up consolidated accounts arose from the need for information on the economic and financial situation of groups of companies and their interdependence relationships.
The consolidation techniques used in this course allow the preparation of consolidated balance sheets and consolidated statements of income, considering a group of companies as a single entity.

OBJECTIVES AND EXPECTED LEARNING OUTCOMES
- To know the concepts associated to the concentration of business and group activities;
- To learn the theories underlying the elaboration of consolidated information;
- Determine consolidation perimeters;
- Identify situations of obligation and exemption of consolidation;
- Distinguish the nature of the participation in the capital of other companies;
- Apply procedures and methods of consolidation of equity, total consolidation and proportional consolidation;
- Produce and interpret consolidated financial statements and related disclosures.

SKILLS TO BE DEVELOPED
The student acquires skills, which allow the preparation of balance sheets and consolidated income statements, using the 3 consolidation methods. It also acquires the competence to read and analyze consolidated accounts.

Programme

1. Group concept;
2. Coordination of commercial companies
3. Consolidation of financial statements
3.1. Entities required to consolidate
3.1.1. Percentage of interest and percentage of control
3.1.2. Types of financial participation
3.1.3. Subsidiary companies, associates and jointly controlled companies
3.2. Consolidation perimeter: waiver and exclusion
3.3. Homogenization of financial statements
3.4. Consolidation methods
3.5. Elimination of intra-group operations
3.6. Consolidated Financial Statements
4. Application of the equity method
5. Procedures for integral and proportional consolidation
6. Other forms of cooperation between undertakings
6.1. Grouping of companies
6.2. Complementary grouping of companies (ACE)
6.3. European Economic Interest Grouping (EEIG)
6.4 Consortium
6.5. Association in participation
7. Disclosures;
8. Transformation of companies, mergers, acquisitions and divisions
9. Dissolution and liquidation of companies

Demonstration of the syllabus coherence with the curricular unit's learning objectives

The syllabus allows students to:
- To know the concepts associated with the concentration of business and group activities;
- To learn the theories underlying the elaboration of consolidated information;
- Determine consolidation perimeters;
- Identify situations of compulsion and lack of consolidation;
- Distinguish the nature of the participation in the capital of other companies;
- Apply procedures and methods of consolidation of equity, total consolidation and proportional consolidation;
- Produce and interpret consolidated financial statements and related disclosures.

Main literature

Rodrigues, João ;PARTICIPAÇÕES FINANCEIRAS E CONSOLIDAÇÃO DE CONTAS, Porto Editora, 2015. ISBN: 978-972-0-32638-6

Supplementary Bibliography

Rodrigues, José Azevedo;Práticas de Consolidação de Contas, Áreas Editora, 2012

Lopes, Carlos António Rosa;Consolidação de Contas, Sílabo, 2011

Learning Methods

The methodological approach of programmatic content is supported in practical cases.

Assessment Components

Avaliação distribuída com exame final

Assessment Components

Description	Type	Time (hours)	Conclusion Date
Attendance (estimated)	Lessons	22,5
	Teste/Exame	3
	Study	9
	Study	45,5
	Total:	80

Continuous Assessment

- 2 Individual written tests: 2X40%

- E-learning: Resolution of application exercises: 20%

Under the terms of the Bachelor's Regulation:

1. The students' attendance in classes will be recorded and, if the number of absences per student exceeds 30% of the total number of lessons scheduled for each course unit, the student will be automatically transferred to the final evaluation (regular season).

2. In the written tests and other assessment elements mentioned in paragraph 2 of Art. 39 it is necessary to obtain a minimum grade of 7.5 (seven point five) points.

3. If the student misses a test or receives a grade lower than 7.5 points in the tests or in another assessment element mentioned in the previous number, the student will be automatically transferred to the final evaluation (regular season). 

4. If the student misses or obtains less than 7.5 in the second written test, held in the same date of the final exam in the regular season, they may apply for further evaluation in the Appeal season.

Final Exam

Individual written test with the weighting of 100%.

Proofs and special works

Demonstration of the coherence between the teaching methodologies and the learning outcomes

The methodologies considered have in consideration the curricular unit.
During the sessions, students are encouraged to complement the theoretical knowledge taught with the resolution of exercises.