ACC 530: Group Accounting

The lecture covers the preparation and interpretation of consolidated financial statements based on IFRS. All consolidation and elimination entries are introduced that are necessary for combining the separate statements of financial position and for eliminating the intercompany trans­actions. In addition, theoretical models explaining the fundamental approaches to group accounting are presented and discussed. Based on various real cases, students are shown how legal and regulatory requirements can be met in the context of group accounting in order to strategically steer a group. The case studies are thus complementing the lecture with first-hand evidence of how specific, practice-relevant issues of group accounting manifest.

Learning outcomes
Students know the regulations for group accounting. Based on this knowledge, students are able to prepare consolidated financial statements. They learn how consolidation methods impact the consolidated financial statements and are able to interpret group reports. Furthermore, students learn how the regulatory framework of group accounting can be applied to successfully steer international groups based on case studies.

Necessary prerequisites
Not taken ACC 511

Recommended prerequisites
Bachelor-level knowledge of financial accounting

Forms of teaching and learningContact hoursIndependent study time
Lecture2 SWS9 SWS
Exercise class2 SWS4 SWS
Case Study Presentation2 SWS4 SWS
ECTS credits8
Graded yes
Form of assessmentWritten exam (90 min)
Restricted admissionno
Further information
Performing lecturer
Prof. Dr. Dirk Simons
Prof. Dr. Dirk Simons
Frequency of offeringFall semester
Duration of module 1 semester
Range of applicationM.Sc. MMM, M.Sc. WiPäd, M.Sc. VWL, M.Sc. Wirt. Inf., LL.M., MAKUWI
Preliminary course work
Program-specific Competency GoalsCG 1
LiteraturePicker, R., K. Clark, J. Dunn, D. Kolitz, G. Livne, J. Loftus, and L. van der Tas (2016), Applying International Financial Reporting Standards, 4th edition, Wiley.
Ruhnke, K. and D. Simons (2018), Rechnungs­legung nach IFRS und HGB, 4th edition, Schäffer-Poeschel.
Course outlineGroups and Theories of Consolidated Financial Statements
Scope of Consolidation
Preparatory Measures
Capital Consolidation in a Single-Stage Group
Accounting for Goodwill
Capital Consolidation in a Multi-Stage Group
Increase in Shares
Decrease in Shares
Intragroup Trans­actions
Other Forms of Consolidation
Segment Reporting