040125 KU Internationale Rechnungslegung B (MA) (2023S)

This course builds on the course “Internationale Rechnungslegung A”. It focuses particularly on multinational (public listed) companies that must handle financial accounting and contextual differences regarding their financial reporting under the International Financial Reporting regime.

The course will provide participants with relevant knowledge of accounting and reporting for international groups by introducing students to International Financial Reporting Standards (IAS/IFRS) at an intermediate level which are relevant standards for group accounting.

Intended Learning Outcomes (ILO)
On completion of the course, the students will be able to
1. understand a business combination and how to account for it; understand the accounting for goodwill
2. be able to determine goodwill in more complex situations, such as non-controlling interests and step acquisitions
3. know how to account for disposals, both with and without loss of control, and know the requirements of IFRS 3 Business Combinations
4. outline the need for consolidated financial statements
5. prepare consolidated financial statements by IFRS Standards
6. understand and apply the mechanics of preparing consolidated financial statements
7. identify an associate and a joint venture
8. identify the need to disclose related party transactions
9. consider the mechanics of accounting for an associate and a joint venture
10. explain the requirements of IAS 24 Related Party Transactions
11. explain the requirements of IAS 28 Investments in Associates and Joint Ventures
12. explain the requirements of IFRS 11 Joint Arrangements
13. explain the necessity for foreign currency conversion and translation
14. understand the concept of functional currency and presentation currency
15. describe the IFRS Standards regulations in respect of foreign currency transactions
16. describe the IFRS Standards regulations in respect of translating foreign entities
17. explain the basics of hedging foreign currency exposure and the application of hedge accounting
18. understand specific issues as extending the net investment, translating goodwill, accounting for disposals, translating into currencies of hyperinflationary economies
19. understand the IFRS Standards disclosure requirements apply research-based literature to describe and analyze particular aspects of voluntary corporate disclosures related to own projects

Judgment and approach
The course is aimed at the student acquiring in-depth knowledge of financial accounting for multinationals. Furthermore, students will deepen their capacity for independent analysis of different financial accounting problems in an international context.