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|
Teaching and assessment methods will be indicated as soon as the rules of context for teaching in year 2020/21 will be provided.