The course is focused on the objectives, rules and techniques of the preparation of consolidated financial statements according to German GAAP and IFRS as well as on basic elements of corporate control.
After an introduction about the necessity and the concept of consolidated financial statements, the legal framework and the relevant accounting standards, the basic principles of consolidated accounting are explained. Based on this, students become familiar with the main legal requirements and accounting standards concerning the preparation of consolidated financial statements. Main topics are the identification of an obligation for group reporting, the determination of the scope of consolidated financial statements, the preparation of the basis of consolidation, methods of capital consolidation, elimination of inter-company transactions as well as accounting for deferred taxes. Additionally, the course covers also specific disclosure requirements concerning the notes to consolidated accounts as well as the preparation of the director´s report supplementing the consolidated statements. Legislative requirements on the publication and auditing of consolidated financial statements under German GAAP are also discussed. Due to the increasing globalisation of accounting, another main part of the course deals with special issues of international group reporting and the related supplementary challenges (e.g. foreign currency translation).
Concerning group control the students get to know the different control levels and instruments as well as incentive schemes. Essential characteristics of control systems and control quantities are also discussed. Besides, components and processes of an effective risk management system are shown.
This course is based on the contents of the bachelor course Financial Reporting II. Therefore, it is necessary to have full knowledge of this course. For students who have not attended this course we recommend to attend in advance financial reporting II voluntarily. Students who received their Bachelor's degree from another university are encouraged to contact anyone of our team regarding the prerequisites of the course.