IFRS and Risks

Ects : 3

Enseignant responsable :


Volume horaire : 21

Description du contenu de l'enseignement :

Chapter 1: Business combinations and financial consolidated statements

A) Business combinations : An historical perspective

B) Why business combinations?

C) Reasons for subsidiary companies

D) Types of business combinations

E) Definition of consolidated financial statements

F) Classes of users

G) Consolidated financial statements concepts’

H) Reglementation of consolidated financial statements


Chapter 2: The scope of consolidation

A) Control (IFRS 10)

B) Significant influence (IAS 28)

C) Joint control (IFRS 11)


Chapter 3: Methods of consolidation

A) Full consolidation

B) Equity method

C) Proportionate consolidation


Chapter 4: Elimination of intercompany trading, unrealized profits and reconciliation of inter company balances

A) Reconciliation for depreciation

B) Reconciliation for finance lease (IAS 17)

C) Elimination of inter company trading

D) Elimination of unrealized profits


Chapter 5: Goodwill in consolidated financial statements: IFRS 3

A) Economical approach

B) Accounting approach

C) Analyse of the goodwill

D) Treatments and reflex ion about the goodwill


Chapter 6 :

Audits of group financial statements

A) Group-wide Controls

B) Consolidation Process

C) Matters relating to the consolidation process

D) Matters relating to consolidation adjustments

Pré-requis obligatoires :

Financial accounting

Coefficient : 1

Compétence à acquérir :

Focus on IFRS concerning consolidated financial statements

Analyse risks in the process of consolidated financial statements

Interpretation of International Standard Audit (600) on consolidated financial statements

Bibliographie, lectures recommandées

Beckman Judy K. “The Economic Unit Approach to Consolidated Financial Statements: Support From the Financial Economics Literature”,

Journal of Accounting Literature, 1995, volume 14, number 1, pp. 1-23.

Bensadon Didier and Praquin Nicolas (Editors)

IFRS in a global world : international and critical perspectives on accounting", Berling, Springer, 2016.

Bensadon D, « La frontière comptable du groupe : Evolution de concept de périmètre de consolidation des comptes en France 1965-1985 »,

Entreprises et Histoire, n°45, novembre 2005, pp 45-56

Casabona P-A & Ashwal A, “The concept of control in consolidated financial statements : convergence of US and international accounting rules”,

Review of business, spring 2005, volume 26, number 2, pp. 36-42.

Gray S-J. & Needles Belverd E,

Financial Accounting: A Global Approach, Houghton Mifflin Company, Boston, 2019.

IASB, International Accounting Standard, IFRS 10, Consolidated and separate financial statements

IASB, International Accounting Standards, n° 28, Investments in associates

IASB, International Accounting Standards, IFRS 11, Interest in joint ventures

IASB, International Accounting Standards, IFRS n°3, Business combinations.

Leo K., Hoggett J., Sweeting J., and Radford J.,

Company Accounting, 6 th edition, Wiley, 2018.

Mfandaidza R-H,

Consolidated financial statements : An international perspective, Juta Academic, 2020

Whittred G., “The Derived Demand for Consolidated Financial Reporting”,

Journal of Accounting and Economics, 1987, volume 9, number 3, pp. 259-285.