Learning objectives

The course aims to develop the student’s capability to understand and scrutinize corporate groups' governance mechanisms, reporting processes and financial performances. The course particularly helps developing the student’s ability to prepare a consolidated financial statement according to both the Italian law and the international financial reporting standards (Ias/Ifrs). At the end of the learning process and coherently with the course aims, the student must demonstrate its ability understand the corporate group economics and the consolidated financial statement discipline. The student must also be able to solve practical exercises about the preparation and interpretation of the consolidated financial statement.

Prerequisites and basic notions

There are no prerequisites. However, students are invited to have at least basic knowledge of accounting and financial statements, having particular regard to the effects of transactions on the balance sheet values and to the valuation of equity investments in the financial statements. Those who do not have this knowledge can ask the teacher for information on introductory readings.

Program

1. Business groups
- The constitution of business groups: determinants and processes
- Business groups typologies
- The governance of business groups
2. Consolidated financial statements
- Source and reference discipline
- The consolidation area
- Methods of consolidation
- Purchase price allocation
- Intragroup transactions
3. Group performances
- Reading the consolidated financial statements
- Models for the analysis of group financial conditions
- Advanced group reporting: sustainability reports and integrated reporting
The teaching materials is provided online, through the E-learning service, within the specific webpage prepared for this course.

Bibliography

Didactic methods

The teaching methods consist of lectures, exercises, case study analysis and company testimonials.

Learning assessment procedures

The exam includes a written test, divided into three questions. The test aims to verify knowledge of the entire program and is divided into three questions. There is always an application part. The test is passed when the answers to all the questions are positive.
An optional group work on the analysis of the disclosure offered in the consolidated financial statements of Italian listed companies provides a bonus that is added to the positive mark of the written test.

Evaluation criteria

The questions are 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

Each question requires an evaluation out of thirty. The final grade represents the average of the marks obtained in the three questions. However, the student must answer at least sufficiently (18/30) to each of the three questions.

Exam language

Italiana