Consolidation of accounts: a practical approach

Increased and more complex requirements set on financial communication related to consolidated accounts have imposed consolidation as a key competence within a financial department.

This 1.5 days training, embedding numerous practical exercises, covers the full consolidation process and highlights differences in treatment between Luxembourg GAAP and IFRS as imposed on consolidated financial statements.

Objectives

At the end of the training, participants will be able to:

• describe the general principles of consolidation;
• identify and distinguish the different methods of consolidation of accounts;
• carry out a consolidation of accounts in accordance with all stages of the process and with the appropriate accounting framework.

Luxembourg legal and regulatory framework

• Luxembourg regulatory framework and IFRS
• Exemptions and exclusions
• Content and closing date of the financial statements

Determination of consolidation

• General Principles
• Subsidiaries, joint ventures and associated companies
• Determination of the percentage of control
• Special treatment of special purpose entities

Basis of consolidation

• General Principles
• Fully consolidated subsidiaries
• Proportional consolidation of joint ventures
• Equity Associates
• Determination of percentage interest

Operations prior to consolidation

• Standardisation of accounting principles and policies
• Standardisation of closing dates
• Identification and recognition of deferred taxes
• Entities abroad and issue of foreign currency

Stages of consolidation

• Elimination of balances and transactions within a company
• Treatment of own shares
• Treatment of changes in scope of consolidation (acquisitions and disposals)

Presentation and content of financial statements

• Luxembourg accounting principles
• IFRS in the specific context of the preparation of consolidated financial statements

This training is coordinated by Olivier Laurent, Director in the accounting and tax department at PwC Luxembourg.

Olivier specialised in the consolidation of private equity, international groups and real estate structures.
With more than 20 years of experience, Olivier has in-depth knowledge of consolidation advice under Luxembourg GAAP and IFRS. He is also responsible of consolidation training for PwC's clients and staff.