Combined and Consolidated Financial Statements Video Lecture

Ind AS 27 – Separate Financial Statements

What you will learn:

• What are Separate Financial Statements
• Objective and Scope of Ind AS 27
• Different aspects of Separate Financial Statements
• Preparation
• Accounting treatment
• When an entity ceases to be an investment entity
• When an entity becomes an investment entity
• Dividends
• Reorganising the structure of a group
• Reference to Conceptual Framework
• Primary Financial Statements
• Combined Financial Statements
• Unconsolidated Financial Statements
• Consolidated Financial Statements

Ind AS 28 – Investments in Associates and Joint Ventures

What you will learn:

• Objective
• What is an associate
• Joint venture
• Significant influence
• Financial and operating policies
• Characteristics
• Existence of significant influence
• Equity method with examples
• Changes in ownership interest with example
• Equity method procedures with example
• Upstream and downstream transactions
• Reduction in NRV of assets
• Contribution of non-monetary assets
• Commercial substance
• Equity interest
• Accounting for investment
• Determining entity’s share of the associate or joint venture
• Entity’s net investment
• When entity’s interest is reduced to zero
• Impairment losses

Ind AS 110 – Consolidated Financial Statements

What you will learn:

• Essence of consolidated financial statements
• What is control
• Power over an investee
• Existing rights
• Relevant activities with examples
• Protective rights with examples
• Purpose and design of an investee
• Power with a majority of voting rights
• Majority of the voting rights but not power
• Power without a majority of the voting rights
• Contractual arrangement with other vote holders
• Rights from other contractual arrangements
• Investor’s voting rights with examples
• Potential voting rights with examples
• Example of rights that can give an investor power
• When voting cannot have a significant effect on an investee’s returns
• Exposure, or rights, to variable returns from an investee
• What affects the amount of the investor’s returns
• Relationship with other parties
• What are de facto agents
• Accounting requirements
• Non-controlling interests
• Loss of control
• Recognition and derecognition
• What is an investment entity
• Characteristics of an investment entity
• Investment entities – exceptions to consolidation

Ind AS 111 – Joint Arrangements

What you will learn:

• What is a joint arrangement
• Party to a joint arrangement
• Contractual arrangement
• Joint control
• Assessing joint control with examples
• Types of joint arrangement
• Classification of a joint arrangement
• Structure
• Structured through a separate vehicle
• Legal form of the separate vehicle
• Assessing the terms of the contractual agreement
• Assessing other facts and circumstances
• Classification of Joint Arrangement structured through a separate vehicle with examples
• Joint operations
• Accounting for sales or contributions of assets to a joint operation
• Joint operation – other considerations
• Joint ventures
• Disclosures of interests in joint arrangements

Ind AS 103 – Business Combinations

What you will learn:

• Definition of a business
• Ordinary activities
• Elements of a business
• What is input, process and output with examples
• Features of business combination
• Who is an acquirer and acquiree
• Definition of control
• Mergers of equals and true merger
• When it is an asset acquisition or business combination
• Difference between asset acquisition and business combination
• Optional Concentration Test
• Applying the Concentration Test
• Fair value of gross assets acquired
• Single identifiable asset
• Examples of single identifiable asset
• Group of similar identifiable assets
• Which assets are not similar assets
• Examples of group of similar identifiable assets
• Determining the concentration criteria
• Assessing whether an acquired process is substantive
• Evaluation when outputs are not present
• Evaluation when outputs are present
• Acquired contract
• Identifying a Business Combination
• Structure of a Business Combination
• Acquisition method
• Identifying the acquirer
• Nature of investments
• Determining the acquisition date
• Recognition Principle
• Recognition Conditions
• Classifying or designating identifiable assets acquired and liabilities assumed in a business combination
• Examples for different accounting
• Exceptions
• Measurement Principle
• Non-controlling Interest (NCI)
• Calculation of NCI and goodwill under both methods
• Exceptions to the recognition or measurement principles
• Contingent Liabilities
• Example of Contingent Liabilities
• Exceptions – Income Taxes
• How DTA or DTL affect the amount of goodwill or bargain purchase
• Employee Benefits
• Indemnification assets
• Leases in which the acquiree is the lessee
• Reacquired rights
• Pre-existing relationship
• Assembled workforce and other items that are not identifiable
• Share-based payment transactions with illustrations
• Assets held for sale
• Recognising and Measuring Goodwill or a Gain from a Bargain Purchase
• Bargain Purchase with example
• Consideration transferred with example
• Contingent consideration
• Business Combination achieved in stages with example
• A Business Combination achieved without transfer or consideration
• Measurement Period
• Determining what is part of Business Combination
• Arrangement for contingent payments to employees or selling shareholders
• Assets with uncertain cash flows
• Assets subject to operating leases in which the acquiree is the lessor
• Assets that the acquirer intends to use in a different way
• Non-controlling interest (NCI) in an acquiree
• Acquisition-related costs
• Subsequent measurement and accounting
• Contingent liabilities
• Indemnification assets
• Several numerical examples illustrating how to consolidate BS, PL, OCI and SOCE

Ind AS 112 – Disclosure of Interests in Other Entities

What you will learn:

Since this is a disclosure based standard, applicable disclosures in Ind AS 112 should be applied with the other 5 standards.

• What is interest in another entity
• Contractual and non-contractual involvement
• Purpose and design and consideration of risks
• Evidence of interest in another entity
• Objective and meeting it
• Separate presentation of information
• Significant judgements and assumptions and other disclosures
• Investment entity status
• Interest in subsidiaries and composition of the group
• Disclosures for each subsidiary that has NCI
• Nature and extent of significant restrictions
• Consolidated structured entities
• Nature and changes in risks associated
• Disclosures for financial and other support
• Interest in unconsolidated subsidiaries and list of disclosures required
• Interests in joint arrangements and associates
• Nature, extent and financial effects of an entity’s interests
• Disclosures for different types of events, transactions and scenarios
• Unconsolidated structured entities
• Disclosures for nature of risks