OVERVIEW

Corporate groups are a widespread phenomenon in the current economy, from large, listed groups to small family businesses. It is crucial for the students the understanding of the reasons of the diffusion of groups of companies and the interpretation of their business and financial conditions, considering the legal framework, with a particular reference to the preparation and interpretation of consolidated financial statements.

AIMS AND CONTENT

LEARNING OUTCOMES

The course aims at developing the capabilities to identify the reasons for the creation of corporate groups, their problems in terms of corporate governance, and their legal and accounting regulation, with a particular attention paid to their consolidated financial statements. At the end of the course, the student will be able to prepare, to read, and to interpret a consolidated financial statement according to the national Italian GAAP. During the course, the student will also understand the reasons of the creation of a business group, and the available protections for minorities.

AIMS AND LEARNING OUTCOMES

Detailed objectives (ordered by difficulty level):

- knowledge and use of specific glossary

- ability to acknowledge the differences between a consolidated and a separate financial statement

- knowledge of the Ita Gaap regarding consolidated financial statements

- ability to apply and interpret the accounting records in preparing a consolidated financial statement

PREREQUISITES

Good knowledge of Financial Accounting and Commercial Law is a fundamental prerequisite

TEACHING METHODS

Frontal lessons, class discussions, case analyses, individual tasks.

Students who have valid certification of physical or learning disabilities  and who wish to discuss possible accommodations or other circumstances regarding lectures, coursework and exams, should speak both with the instructor and with Professor Serena Scotto (scotto@economia.unige.it), the Department’s disability liaison

SYLLABUS/CONTENT

- Corporate groups in the dynamic of business relationships: reasons, pros and cons

- The concept of control

- Majorities and minorities: from cooperation to conflict

- The consolidated financial statements: accounting regulation

- Consolidation of subsidiaries: requirements and procedures

- The inclusion of associates and joint ventures into the consolidated financial statement

- Increases and decreases of interests in subsidiaries without change of control

- Accounting impact of changes in the composition of corporate groups

- Analysis of a consolidated financial statement

RECOMMENDED READING/BIBLIOGRAPHY

- Documents and other materials provided by the teacher and available on the website.

- Consolidated Financial Statements: An International Perspective, Mfandaidza Reuben Hove, Juta and Company Ltd, 2006

RECOMMENDED READING/BIBLIOGRAPHY

Lessons and basic materials are in Italian as the topic specifically concerns Italian Civil Code and Italian tax legislation

LESSONS

LESSONS START

The course is in the first semester, and it will start according to the general teaching programme issued by the Department of Economics.

Class schedule

The timetable for this course is available here: Portale EasyAcademy

EXAMS

EXAM DESCRIPTION

The final exam is composed of a written assessment (regarding both theory and cases), and an oral part which starts from a brief analysis prepared by the student on a real example of consolidated financial statement of an European company.

ASSESSMENT METHODS

Students must demonstrate a good understanding of the drivers for the group creation, the problems posed to corporate governance mechanisms, and the legal and accounting regulation of these groups. In particular, the students of the course have to be able to debate the specificity of a consolidated financial statement and to know how to build this company report.