2 CPE This course explains the consolidation process step-by-step, including a subsidiary's acquisition transaction, recognition of goodwill or the bargain purchase gain, the technical aspects of consolidating the financial position and profit & loss statement including elimination conditions and the recognition of Non-controlling Interest (NCI).
This course depends on a case study that simplifies the theory behind the following standards: - ASC 805 Business Combinations, ASC 810 Consolidation, IFRS 3 Business Combination, and IFRS 10 Consolidated Financial Statements.
Course Key Concepts: ASC 805, ASC 810, IFRS 3, IFRS 10, Business Combinations, Consolidation, Consolidated Financial Statements, Goodwill, elimination, non-controlling interest, NCI
Learning Objectives
- Identify the subsidiary's acquisition transaction, and the subsidiary's net assets fair value.
- Recognize the purchase consideration, goodwill, and the gain from a bargain purchase.
- Explore the technical accepts of consolidating the financial statements of a subsidiary entity, including the elimination conditions, intra-entity transactions, and non-controlling interest recognition.
Last updated/reviewed: March 20, 2024
15 Reviews (103 ratings)
Reviews
Anonymous
(Controller)
The content of this course was thorough and structured well. The presenter was a bit dry and read off of the slides without adding much color. The examples were a good way to visualize the material. Overall, a good introduction into what can be a complex topic.
Anonymous
(Experienced Manager)
This course provides in-depth education on goodwill and consolidations. The detailed examples were very helpful. The instructor's pace is good for learning. The only drawback: he is a bit monotone and could use more intonation to hold one's interest.
Joshua Bourquard
(Accounting Manager Financial Reporting a.. at TPx Communications)
Journal entries bring home the consolidation process but could be a little clearer with the examples - such has what happens at various points in the year such as the questions wanted you to know. Overall good but could have more consolidations.
Richard Jones
(Accounting Manager: Statutory Reporting at World Fuel Services)
I enjoyed having some good examples to help bridge the gap between knowing that intercompany transactions need to be eliminated in consolidation and understanding how these eliminations are accomplished through the use of JEs
Anonymous
(Associate Director)
Overall the course did a good job providing basic concepts of the consolidation between IFRS and GAAP. The video was a little hard to understand, but was able to push through and obtain and satisify the course objectives
Anonymous
(Finance and Accounting Consultant)
The detailed analysis by the means of journal entry examples and other detailed transaction level examples helps to understand the core concepts of the topic.
Anonymous
()
Good intro on US GAAP and IFRS but the examples are very simple. Wish there are more examples on complicated elimination entries used in real life.
Anonymous
(Business Controller, Waze)
Good overview, I didn't necessarily need the IFRS comparison. Would have been nice to get a transcript as well
Anonymous
(Finance Consultant)
Good material re: a not-so-simple subject matter. I'll need to continue learning in these areas.
Dominic Villanueva
(Sr Accountant at individual)
Course needs more example. The example given is not enough. Examples help a lot.
Robert Stellato
( at DS Smith)
This was a very good refresher course.. replete with easy to follow examples
Anonymous
(General Accounting, Manager)
It was great course to review consolidated FS under 805 and IFRS3.
Allen Ramsay
( at Emergent Cold)
good reference tool and reminder. very detailed but digestible.
Anonymous
(Senior Revenue Manager)
I enjoyed the course and thought it was very informative.
Jatin Talreja
(Financial Accounting Consultant at Wells Fargo)
The comparison between USGAAP and IFRS was expalined well
Prerequisites
Course Complexity: Intermediate
No advanced preparation or prerequisites are required for this course.
Education Provider Information
Company:
Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA
95113
Contact:
For more information regarding this course, including complaint and
cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to
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Course Questions and Answers1 Question
Moataz Shokry, CPA, CertIFRChief Financial Officer
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On slide 44, there is a journal entry to Dr. NCI 1,750. However, on slide 43 there is no such elimination entry to Dr. NCI 1,750. If the elimination of NCI 1,750 is correct, wouldn't this make it a net loss on NCI not net profit? Also if we debit NCI 1,750, wouldn't last line of consolidated net profit be 27,250 not 29,000?
Understand that the last line in slide 43 with NCI amounting 1,750 is actually from account closing before elimination process, in which this 1,750 is actually on credit side not debit. I assume that this line is derived from account closing entry as below:
Dr. Subsidiary's net profit 7,000
Cr. Share in Subsidiary's result 5,250
Cr. NCI 1,750
Then during elimination process, you only:
Dr. Share in Subsidiary's result 5,250
Cr. Subsidiary's net profit 5,250
Please kindly advise, correct me if I'm wrong.
Thank you,