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
The student acquires knowledge, which allows:
1. Prepare consolidated balance sheets and statements using the three consolidation methods;
2. Interpret consolidated financial statements;
3. Understand other operations at corporate capital level.
SKILLS TO BE DEVELOPED
1. Know the concepts associated with the concentration of business and group activities;
2. Determine consolidation perimeters;
3. Identify situations of obligation and exemption from consolidation;
4. Distinguish the nature of equity participation in other companies;
5. Apply equity consolidation, full consolidation and proportional consolidation procedures and methods;
6. Produce and interpret consolidated financial statements and related disclosures.
7. Understand other forms of cooperation between companies.
Programme
Chapter I: Concepts and Entities to Consolidate
1.1. Entities required to consolidate;
1.2. Percentage of interest and percentage of control;
1.3. Types of Financial Participation;
1.4. Consolidation Perimeter: Waiver and Exclusion;
1.5. Homogenization of financial statements.
Chapter II - Consolidation Methods
2.1. Application of the equity method;
2.2. Full and proportional consolidation procedures;
2.3. Preparation of consolidated financial statements.
Chapter III: Other Operations
3.1. Transformation of companies, mergers, acquisitions and splits;
3.2. Company dissolution and liquidation.
Demonstration of the syllabus coherence with the curricular unit's learning objectives
The proposed syllabus allows to acquire knowledge and to develop the competences foreseen in the objectives, as:
- Chapters I and II meet objectives 1 and 2, as the methods for preparing and interpreting the financial statements are studied;
- Chapter III address objective 3, and other forms of cooperation between companies and other operations at their capital level are addressed.
Main literature
Rodrigues, João ;Participações financeiras e consolidação de contas, Porto Editora, 2015. ISBN: 978-972-0-32638-6
Supplementary Bibliography
Lopes, Carlos António Rosa;Consolidação de Contas, Sílabo, 2017. ISBN: 9789726189107
Rodrigues, José Azevedo;Práticas de Consolidação de Contas, Áreas Editora, 2012
Learning Methods
The methodological approach of programmatic content is supported in practical cases.
Assessment Components
Avaliação apenas com exame final
Assessment Components
Description
Type
Time (hours)
Conclusion Date
Attendance (estimated)
Lessons
22,5
Evaluation
Teste/Exame
3
Seminar
Study
2
Others
Study
9
Individual autonomous study
Study
43,5
Total:
80
Continuous Assessment
2 Individual written tests: 40% each
2 Group application exercises: 5% + 10%
Under the terms of the Bachelor's Regulation:
a) 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).
b) 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.
c) 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).
d) 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.
e) All written academic work provided for in the assessment (reports, case studies, etc.) must be submitted to the Turnitin database, available on the ISAG E-Learning platform, with a similarity rate up to 30% acceptable.
Final Exam
1 Individual written exam: 100%.
Demonstration of the coherence between the teaching methodologies and the learning outcomes
Teaching methodologies aim to enhance learning, both in theoretical and practical aspects. It seeks to expose the student to a diverse set of concepts essential to the treatment and analysis of accounting data. Similarly, it is intended to use critical thinking in interpreting accounting information, and logical thinking in solving practical problems.