Workshop Overview
This workshop delivers a comprehensive understanding of the fundamental consolidation process in accordance with financial reporting standards. Participants will gain proficiency in assessing control, determining the acquisition date, and measuring the consideration transferred—including cash, deferred payments, share issues, and contingent considerations. The curriculum covers critical technical steps such as identifying the fair value of identifiable assets and liabilities, measuring non-controlling interests, and calculating goodwill (both positive and negative). Furthermore, attendees will explore the intricacies of eliminating intragroup transactions, covering sales, fixed asset transfers, dividends, and leases. The program also addresses advanced topics like foreign currency translation and the handling of divergent financial year-ends or accounting policies between parent and subsidiary companies. Practical application is reinforced through real-world case studies and detailed journal entries for simple group structures.

Event Outline: Basic Consolidation

• Assess Control: Evaluate whether the investor possesses control over the investee to determine if it qualifies as a subsidiary.
• Determine Acquisition Date: Identify the specific date on which control is obtained.
• Measure Consideration Transferred:
• • Cash
  • Deferred cash payable
  • Other assets
  • Share issues
  • Contingent consideration
• Determine Fair Value: Measure the fair value of identifiable assets acquired and liabilities assumed.
• Measure Non-Controlling Interests (NCI): Determine initial measurement using either:
• • Fair value method (full method)
  • Proportionate share of net assets method (partial method)
• Calculate Goodwill:
• • Positive goodwill (bargain purchase)
  • Negative goodwill (gain on bargain purchase)
• Eliminate Intragroup Transactions:
• • Elimination of intragroup sales transactions
  • Determination of profit attributable to non-controlling interests
  • Elimination of unrealised profits in intragroup inventory sales:
  • • Upstream sales
    • Downstream sales
    • Determination of unrealised profit for non-controlling interests
  • Elimination of unrealised profits in intragroup fixed asset transfers:
  • • Non-depreciable fixed assets
    • Depreciable fixed assets
  • Elimination of dividends from subsidiary to parent:
  • • Fully owned subsidiary
    • Partially owned subsidiary
  • Elimination of intragroup lease transactions:
  • • Finance lease
    • Operating lease
• Address Reporting Disparities:
• • Translation of subsidiary’s foreign currency financial statements:
  • • Translation of the income statement
    • Translation of the statement of financial position
    • Translation of the statement of cash flows
  • Addressing subsidiaries with a different financial year-end from the group
  • Addressing subsidiaries with different accounting policies from the group

Key Takeaways
By the end of this workshop, participants will be able to:

1. Master the end-to-end consolidation workflow, from assessing control and measuring consideration to calculating goodwill and non-controlling interests.
2. Apply precise elimination techniques for all major intragroup transactions—including sales, asset transfers, dividends, and leases—to ensure the accuracy of group financial reports.
3. Resolve complex consolidation challenges with confidence, such as foreign currency translation, mismatched financial year-ends, and aligning differing accounting policies between parent and subsidiary.
4. Leverage hands-on expertise gained through practical case studies and journal entries, reinforcing the ability to apply consolidation principles in real-world scenarios involving simple group structures.

Who Should Attend?
This workshop is meticulously designed for finance professionals involved in consolidation, reporting, or analysis, including:

• Accountants & Financial Controllers responsible for preparing or auditing consolidated financial statements.
• Auditors & Assurance Professionals who review group accounts and require a deep understanding of consolidation adjustments to verify their accuracy.
• Corporate Finance & M&A Teams involved in acquisitions, disposals, or group restructuring, who need a solid grasp of the underlying consolidation mechanics.
• Financial Analysts & Investment Professionals who interpret consolidated reports to assess group performance, financial health, and valuation.
• Finance Managers & Group Reporting Specialists tasked with overseeing multi-entity financial statements under IFRS or similar GAAP frameworks.
• Regulatory & Compliance Officers ensuring strict adherence to financial reporting standards within complex group structures.

This workshop qualifies for 7.0 CPE hours in Financial and Sustainability Reporting Standards and Pronouncements (Category 1).