Consolidated Financial Statements and Financing
| Structure Type: | Study unit |
|---|---|
| Code: | TL00BR17 |
| Curriculum: | LT 2025 |
| Level: | Bachelor of Business Administration |
| Year of Study: | 2 (2026-2027) |
| Semester: | Spring |
| Credits: | 5 cr |
| Responsible Teacher: | Lehtimäki, Harri |
| Language of Instruction: | Finnish |
Learning Outcomes
After completing the course, the student will understand the corporate group structure, master the technique of preparing consolidated financial statements, be able to eliminate intra-group transactions, distinguish the minority interest of the group, handle associated companies in the consolidated financial statements, and prepare consolidated financial statements. The student will also be able to prepare consolidated financial statements using the Navita business model software and understand the core aspects of IFRS financial reporting practices. Additionally, the student will be familiar with the company's key sources of financing, be able to calculate the need for working capital, and assess financial efficiency. The student will also be able to prepare direct and indirect cash flow statements.
Student's Workload
1 ECTS credit equals 27 hours of work, so 5 ECTS credits equal 135 hours, distributed in the course as follows:
• Contact lessonss and exercises approx. 42 hours
• Independent study approx. 85 hours
• Navita business model exercise approx. 2 hours
• Exam I approx. 3 hours
• Exam II approx. 3 hours
Prerequisites / Recommended Optional Courses
Basics of accounting, Accounting in practice and payroll management, Accounting for Different Company Types, Special Issues in Accounting.
Contents
Definition of a corporate group and various group structures, content and objectives of consolidated financial statements, preparation techniques, elimination of intra-group transactions and mutual ownership, distinction of minority interest, consolidation of subsidiaries and associates into the consolidated financial statements, use of the Navita business model software in preparing consolidated financial statements, IAS/IFRS standards and the basics of IFRS financial reporting practices, financial planning and sources of financing, calculation of working capital requirements, purchase invoices as a means of financing, direct and indirect cash flow statements.
Regional Impact
There are many international groups operating in the region that are required to prepare consolidated financial statements. Nowadays, even smaller companies form groups. Additionally, good financial planning creates the economic conditions necessary for the region's businesses to operate. Preparing statutory financial statements as part of the financial reporting of regional companies.
Internationality
International companies prepare their financial statements according to the IFRS model. Consolidated financial statements combine the financial statements of companies operating in different countries. The course focuses on the practices of companies operating internationally. Access to international markets requires precise financial planning and mastery of statutory financial statements.
Recommended or Required Reading and Other Learning Resources/Tools
• Course lectures, other teaching materials, exercises
• Supplementary material: Alhola, Kari - Koivikko, Aarne - Räty, Päivi. Konsernitilinpäätös ja IAS. Vantaa.
Mode of Delivery / Planned Learning Activities and Teaching Methods
Contact lessons, exercises, independent study, exercises using the Navita business model software.
Assessment Criteria
5 the student can utilise, apply and assess critically theories, concepts and methods competently in various situations. He can justify, giving the theoretical base for the solutions made when acting in tasks of an expert.
3 the student can justify one's own solutions and compare and analyse various points of view. He can discuss the issues and phenomena of the field competently
1 the student can utilise systematically theories, prinsiples and methods. He can communicate about the professional issues.
Assessment Methods
Numeric grading on a scale of 0-5
The grade is composed as follows:
• Exam on consolidated financial statements and IFRS: 50%
• Exam on finance: 50%
• Successful completion of exercises using the Navita business model software (applies to on-site teaching at VAMK)