Seminar “Consolidation. Business combinations. Basic principles”
On 15-16 March 2012 Deloitte Academy welcomed visitors at its seminar “Consolidation. Business combinations. Basic principles”. The seminar was designed for professionals who prepare or analyze the consolidated financial statements.
It was in no way fortuitous that we have chosen this topic for the open seminar. On the one hand, it is one of the most complicated (from the technical point of view) IFRS issues. On the other hand, it is a topical subject for the largest players in the Ukrainian market as most of them are incorporated and acting as business groups comprised of a number of legal entities controlled by a parent (holding) company.
The seminar consisted of two complementary parts: (1) group definition and actually consolidation technics, and (2) business combinations accounting.
The first part of the seminar was focused not so much on the technical aspects of the consolidation technics (which usually are not overcomplicated) but rather on group identification for consolidation purposes, as well as on difficulties faced by the majority of the Ukrainian groups in preparing the first consolidated financial statements, and on possible ways of overcoming such difficulties.
The second part of the seminar was devoted to various aspects of business acquisition accounting, including definition of what is a business, who is a buyer, which day is the purchase date in terms of IFRS 3, as well as accounting of post acquisition events.
The seminar program:
- Classification of investments
- Control and significant influence: essential difference
- The special purpose entities
- Potential voting rights
- Definition of scope of consolidation
- Combined financial statements as a smart way out of a desperate situation
- Consolidation technics: basic principles
- Business combinations: the acquisition method of accounting
- Recognition and measurement of identified assets, liabilities and contingent liabilities
- Recognition and measurement of non-controlling interest
- Measurement of consideration (contingent consideration)
- Recognition and measuring of goodwill
- Step acquisition
- Accounting of acquisition-related costs
This time we chose a smaller scale format for our event: two groups, each of up to 25 participants. As a result, this enabled personalized interaction with the audience.
In all other respects, we adhered to the existing traditions:
- Friendly atmosphere created by two lecturers-practitioners
- Illustrative examples of application of theoretical concepts in practice
- Associative imagery supporting conceptual ideas
A pea pod was chosen as the symbol of the seminar. Why peas? Firstly, we believe that peas, densely placed in a pod, are the best way to demonstrate the idea of group consolidation, and, secondly, peas are so full of spring in terms of color and mood.
Check this out for yourself.
As regards the presentation format, we believe that presentation should support the facilitator rather than compete for audience attention. Therefore, the slides tend to have a minimum of text and a maximum of bright associations. For example, these.
We will be glad to see you at the following seminars.