Teaching code

4S003749

Academic staff

Cristina Florio, Francesca Rossignoli

Coordinator

Cristina Florio

Credits

9

Language

English

Scientific Disciplinary Sector (SSD)

SECS-P/07 - BUSINESS ADMINISTRATION AND ACCOUNTING STUDIES

Period

primo semestre (lauree magistrali) dal Oct 4, 2021 al Dec 17, 2021.

Lessons timetable Moodle Seminars 3

Learning outcomes

This course aims at developing the skills in understanding and analyzing groups of companies as a form of network useful to pursue dimensional and geographical – and, thus, also international - growth of business activities.

Firstly, the course explores groups' constitutive factors, creation processes and determinants, as well as the possible forms of groups that may be realized. Secondly, the course focuses on the representation of consolidated equity and income through the preparation of the consolidated financial statement according to the International Financial Reporting Standards (IAS/IFRS). Finally, by building on the knowledge about group structure and the capability of reading a consolidated financial statement, the course explains the techniques of performance analysis at the group level, also by relying on relevant reports.

At the end of the course, the student will be able to:
- Know and understand different forms of networks and groups, and judge their consistency with business goals;
- Prepare and read a consolidated financial statement according to the IAS/IFRS;
- Develop a technical analysis and express a judgment on the group financial performance;
- Communicate effectually the strategic and managerial features, as well as the performance, of business networks aimed at internationalization purposes.

Program

The course program is structured into three parts:
Part 1 - Group of companies: Genesis and morphology
1.1 Cooperative forms
1.2 Group of companies concept, creation purposes, and
processes
1.2.1 Reasons and definition
1.2.2 Constitutive factors
1.2.3 Creation processes
1.2.4 Determinants of groups creation
1.3 Group of companies classifications

Part 2 - Principles and practice of group accounts
2.1 Consolidated financial statement
2.1.1 Objective and content
2.1.2 Logical and procedural steps
2.1.3 Technicalities
2.2 Full consolidation method
2.3 Consolidated financial statement according to IAS/IFRS
2.3.1 Sources of reference
2.3.2 Consolidation area
2.3.3 Consolidation procedure

Part 3 – Analysis of group performance
3.1 Analysis of group performance
3.1.1 Purpose and methodology
3.1.2 Profitability analysis within groups
3.1.3 Solvency analysis within groups
3.2 Segment reporting
3.3 Reconciliation statement


Teaching materials
The content of the textbook, of the lessons and the exercises carried out during the course is consistent with the programme. Both the programme and the studying materials are the same for students who attend and students who do not attend the course. Teaching slides, further readings and accounting standards will be available on the e-learning platform (teaching Dashboard). Some examples of the exam will be made available during the course.

Studying materials
Slides, case-studies, reseach reports and any file uploaded on the e-learning dashboard.
Ditillo A., Caglio A., Controlling Collaboration Between Firms, CIMA Publishing, 2008 (only Chapter 1, available on the e-learning center)
Gallimberti C., Marra A., Prencipe A., Consolidation – Preparing and understanding consolidated financial statements under IFRS, McGraw-Hill Education, Milano, 2013 (only Chapters 3-6 and 8)
Petersen C. V., Plenborg T., Financial Statement Analysis, Prentice Hall, 2012 (only Chapters 4-7)

Bibliography

Examination Methods

Students will be assessed through:
1. An intermediate examination, that consists in a teamwork analysis of the structure, M&A activity and performance of a group of companies. The intermediate examination provides for the drafting of a 10-15 page report (in word or pdf), which is due towards the end of the course, and a 3-5 slide presentation (in around 10 minutes per team). The teamwork can be done entirely at a distance, through software and applications made available by the University of Verona. The teamwork aims at assessing the capability acquired in performing and discussing a meaningful group analysis, both at a technical and an interpretive level. Furthermore, the capabilities will be assessed, both individually and collectively, in making judgments on the group performance, in communicating with the group members and in written and oral communications. The teamwork will provide students with maximum 3 points.
2. A final examination, that consists in an individual written test on the whole program and aims at assessing the knowledge of the topics studied during the course and the capability of solving some case-studies. The written examination is structured into three parts: the first part includes 5 multiple-choice or true/false questions; the second part includes 3 semi-open questions and may include case analysis; the third part includes 2 numerical exercises, of which one focused on the consolidated financial statement. The examination lasts 90 minutes, provides students with maximum 30/30 points, and will be held at a distance (i.e., online).
The final mark is obtained by the sum of the two partial points.

For those students who cannot take part in the team work (because of working reasons or other objective reasons), the assessment is carried out through the individual written test as describe at point 2. above.

The examination method may be subject to changes in case the emergency related with COVID-19 pandemic continues, in accordance with any provisions taken by the Ministry of the University and the University of Verona.