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.
The course program is structured into 3 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
2.2 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: purpose and methodology
3.2 Profitability analysis within groups
3.3 Solvency analysis within groups
3.4. Other tools for the analysis of group performance
3.4.1 Segment reporting
3.4.2 Reconciliation statement
3.4.3 Integrated reporting
In order to encourage students’ learning ability, the course adopts an integrated approach that combines theoretical lessons, practical applications, and discussions of case studies. The course provides for a seminar taught by a Professor coming from a foreign University and a meeting with a business testimony (at least).
During the whole academic year, individual office hour is offered by the Lecturers (please see the Lecturers' web page for updated office hours). The Lecturers are also available on appointment (please send an e-mail). Furthermore, during the course and till the end of the Winter exam session a tutorship is provided to students, as an integrative and complementary activity in respect with the lecturers’ office hour.
Teaching materials (for all students)
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).
Slides, case studies, research reports and all other teaching materials provided by the e-learning center
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 (Chapters 3-6 and 8)
Petersen C. V., Plenborg T., Financial Statement Analysis, Prentice Hall, 2012 (Chapters 4-7)
|Gallimberti C., Marra A., Prencipe A.||Consolidation – Preparing and understanding consolidated financial statements under IFRS||McGraw-Hill Education||2013|
|Ditillo A., Caglio A.||Controlling Collaboration Between Firms||CIMA Publishing||2008|
|Petersen C.V., Plenborg T.||Financial Statement Analysis||Prentice Hall||2012|
Students will be assessed differently according to their status as attending or non-attending students. Students who attend the course will be assessed through an intermediate and a final exam: 1. The intermediate exam consists in a group-work analyses of the structure, M&A activity and performance of a group of companies. The intermediate exam consists in the drafting of a report of around 10-15 pages (word or pdf), which is due towards the end of the course and shall be sent by e-mail, and a 3-slide presentation to be discussed in classroom (around 10 minutes per group). The group-work 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 group-work will provide students with maximum 3 points. 2. The final exam consists in an individual written test on the whole program and aimed at assessing the knowledge of the topics studied during the course and the capability of solving some case-studies. The written exam 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 exam lasts 90 minutes and will provide students with maximum 30/30 points. The final mark is obtained by the sum of the two partial points. Students who do not attend the course will be assessed through a final exam consisting in an individual written test on the whole program and aimed at assessing the knowledge of the topics studied during the course and the capability of solving some case-studies. The written exam 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 exam lasts 90 minutes and will provide students with maximum 30/30 points. Students who pass the written test might request an oral examination if they were confident of reaching a higher mark.