Understanding & Preparing Consolidated Financial Statements

Introduction

Consolidated financial statements are the financial statements of a group of companies presented as those of a single company. Users of the financial statements of the parent company are usually concerned with, and need to be informed about, the financial position, results of operations and changes in financial position of the group as a whole. Consolidated financial statements serve this need.

Course Outline

This seminar focuses, firstly on the principles and reporting requirements of the relevant Private Entities Reporting Standards (PERS), and then the recent developments in the equivalent Financial Reporting Standards (FRS) as follows:

The objectives of this 2-day workshop are to ensure participants acquire the necessary knowledge for:

• a systematic approach to the preparation and presentation of consolidated financial statements for a group of enterprises under the control of the reporting parent
• compliance with the relevant financial reporting standards, i.e. both the FRS and PERS

Course Contents

1. Presentation and Scope of Consolidated Financial Statements in accordance with MASB 11 and FRS 127

• Concept of corporate groups
• Basic concepts of group accounts
• Acquisition method of consolidation
  • Consolidated Balance Sheet
  • Consolidated Income Statement
• Minority interests
• Inter-company transactions
• Consolidation of direct and indirect subsidiaries, and multiple group structures
• Piecemeal Acquisitions
• Disposals of subsidiaries

2. Accounting for investments in associates

• Scope and main principles of MASB 12 and FRS 128
• Separate Financial Statements of the Investor
• Application of the Equity Method
• Disclosures

3. Financial reporting of interests in Joint Ventures

• Scope and main principles of MASB 16 and FRS 131
• Consolidated financial statements of a venturer
• Application of equity accounting and proportionate consolidation
• Accounting policies and reporting dates
• Disclosures

4. Business combinations

• Scope and main principles of FRS 3
• Recognition criteria of an acquisition
• Acquisition accounting
• Treatment of Goodwill and Negative Goodwill
• Disclosures

This workshop will use extensive case studies as the approach to enhance understanding and the ability to prepare consolidated financial statements. As participants will be required to perform extensive computations, it is vital that they come equipped with their personal calculators.

Target Audience:

All

CPD Code:

080814JB1

Speaker's Profile

Ms Lim Geok Heng

Ms Lim Geok Heng is a Fellow member of the Association of Chartered Certified Accountants (FCCA, UK) and a Chartered Accountant of the Malaysian Institute of Accountants [CA(M)]. She is also a Certified Professional Trainer (CPT) of the International Professional Managers Association [IPMA, UK].

She has over 20 years experience in areas comprising auditing, financial accounting, treasury functions, education and corporate training. Her most recent past appointments include the positions of Technical and Training Director of a medium-sized international accounting firm, Training Manager of Ernst & Young, Lecturer in Sunway-University College and Senior Lecturer in Tunku Abdul Rahman College.

Currently, Ms Lim is a freelance technical and training consultant with her own training business, EVO Training and Consulting. She speaks on MASB Reporting Standards (FRS and PERS), and accounting and audit issues regularly and extensively throughout Malaysia for professional accounting bodies such as MIA, ACCA, MAICSA, CIMA , MICPA and CPA Australia. In addition, she also conducts in-house technical training on accounting issues for commercial and listed companies, and private training institutions in Malaysia, Singapore and Thailand.

Ms Lim is engaged on a regular basis by medium-sized accounting firms to provide technical and training services for their professional audit staff as well as their business clients. Ms Lim is also the current (and 2006) Chairman of the ACCA- FRS (Financial Reporting Standards) Committee. In addition to the above, she is also a Panel Member of the annual NACRA (National Annual Corporate Report Award) adjudication.