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Groups & Business Combinations

Let's talk about Group Financial Accounting… Daunting, right? From FCTRs to changes in degrees of influence to eliminating pro formas — where do you even begin? This comprehensive guide breaks down everything you need to master consolidated financial statements.

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Get the full 11-part guide with detailed examples, worked solutions, and exam tips (PDF, 183KB)

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Standards Covered

IFRS 3

Business Combinations

IFRS 10

Consolidated Financial Statements

IFRS 12

Disclosure of Interests

IAS 28

Associates & Joint Ventures

Course Content

1

Foundations of Group Financial Reporting

Understand when to consolidate vs equity account. Master the control vs significant influence decision tree.

Control vs Significant InfluenceParent-Subsidiary RelationshipsKey Standards Overview
45 min readStart
2

The Acquisition Method (IFRS 3)

Learn to identify the acquirer, determine the acquisition date, and measure identifiable assets and liabilities.

Identifying the AcquirerFair Value MeasurementContingent Consideration
60 min readStart
3

Consolidation Mechanics (IFRS 10)

Master the consolidation process from combining line items to eliminating intra-group transactions.

Control DefinitionConsolidation ProceduresIntra-Group Eliminations
50 min readStart
4

Analysis of Equity (AOE)

The heart of group accounting. Work through at acquisition, since acquisition, and current year columns.

At AcquisitionSince AcquisitionCurrent YearNCI Allocation
90 min readStart
5

Complex Transactions

Tackle advanced topics like step acquisitions, disposals, foreign subsidiaries (FCTR), and complex intra-group transfers.

Step AcquisitionsLoss of ControlFCTR (IAS 21)Impairment
75 min readStart
6

Associates & Joint Ventures

Learn when to use the equity method instead of consolidation for associates (IAS 28) and joint ventures (IFRS 11).

Significant InfluenceEquity MethodJoint ControlUnrealised Profits
45 min readStart
7

Group Statements & Exam Prep

Pull it all together. Learn to draft group financial statements and master exam techniques for distinction-level results.

Group SOFP & SOCISOCIE & SOCFExam StrategyCommon Mistakes
60 min readStart

Pro Tip: The Analysis of Equity

Always work in the 100% column first, then multiply out to NCI or parent as needed. This reduces errors significantly. The AOE is the heart of group accounting — your journals flow from here.