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 3, 2022 al Dec 23, 2022.

Lessons timetable Moodle Seminars 0

Learning objectives

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.

Prerequisites and basic notions

There are no prerequisites. However, students are invited to have (at least) basic knowledge of the main business transactions, their accounting recognition and their effects on the equity, income and cash flows; the purpose and content of the financial statement. Those who do not have this knowledge are invited to ask the lecturer for information on introductory readings.

Program

The course program is structured into three parts:
Part 1 - Group of companies
1.1 Cooperation among companies
1.2 The essentials of a group of companies
1.2.1 Definition
1.2.2 Constitutive factors
1.2.3 Creation processes
1.2.4 Determinants of a group creation
1.3 Group of companies' classifications
Part 2 - Principles and practice of group accounts
2.1 The essentials of group accounts
2.1.1 Consolidated equity and income
2.1.2 Purpose and content
2.1.3 Consolidation methods
2.1.4 Technicalities
2.2 Consolidated financial statement according to IAS/IFRS
2.2.1 Sources of reference
2.2.2 Consolidation area
2.2.3 Preliminary adjustments
2.2.4 Consolidation procedure: Purchase Price Allocation
2.2.5 Consolidation procedure: Intercompany transactions
2.3 Reconciliation statement
Part 3 – Analysis of group performance
3.1 The essentials of performance analysis at the group level
3.2 Assessing a group's performance
3.2.1 Profitability analysis within groups
3.2.2 Solvency analysis within groups
3.3 Segment reporting
3.4 Beyond financial reporting: The Integrated Report
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

Didactic methods

In order to ehnance the students' learning ability, the course combines lectures, practical applications, discussion of business cases and seminars with practitioners and/or foreign lecturers.

Learning assessment procedures

The exam 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 exame is structured into three parts: the first part includes multiple-choice or true/false questions; the second part includes semi-open questions and may include case analysis; the third part includes numerical exercises, of which one is always focused on the consolidated financial statement. The examination lasts 90 minutes and evaluated in thirties.
A teamwork provides a bonus of 3 points maximum that are added to the positive score of the written exam. The teamwork consists in the analysis of the structure, M&A activity and performance of a group of companies. 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.
For those students who cannot take part in the teamwork, the assessment is carried out through the individual written test only.

Evaluation criteria

The exam is structured in such a way as to verify the level of knowledge of the different parts of the program. Evaluation tends to ascertain this level of knowledge and the ability to apply this knowledge to practical situations.

Criteria for the composition of the final grade

The written exam is evaluated in thirtieths. The mark is computed as the sum of the scores obtained in each of the three parts, if each one of them is at least sufficient.
For the team-work, a maximum of 3 points are assigned, which are added to the mark obtained in the written test, provided that the latter is passed.

Exam language

English