International Standards and Consolidation of Financial Statements

2026/2027

Учебный год

ENG

Обучение ведется на английском языке

3

Кредиты

Кто читает:

Департамент финансов

Статус:

Курс обязательный

Когда читается:

1-й курс, 4 модуль

Course Syllabus

Abstract

Achieving consistency in financial reporting worldwide is the need of the hour, especially if meaningful comparisons are to be made of financial information emanating from different countries using accounting standards that, until recently, were vastly different from each other. Thus, there has arisen the urgent need for promulgation of a common set of global accounting standards or, in other words, global convergence into a common language of accounting for the financial world. International Financial Reporting Standards (IFRS), the standards promulgated by the International Accounting Standards Board (IASB), appear to be emerging as the global accounting standards. The IASB standards are rapidly being adopted in a large number of countries all around the world. Most countries in Europe, including the member states of the European Union, will require listed companies to prepare their consolidated financial statements in accordance with IFRS instead of local requirements. Understanding and appreciating the fundamental principles and requirements of IFRS has become more important than ever before. In this new financial world, knowledge of the fundamental principles of IFRS is essential to meet the growing demands of a changing regulatory and market environment.

Learning Objectives

• The objective of this course is to help students learn how to prepare and interpret the information in financial statements under International Financial Reporting Standards (IFRS).

Expected Learning Outcomes

• • Master the application of complex IFRS provisions (including revenue recognition, leases, financial instruments, and impairment) to resolve challenging real world accounting scenarios, demonstrating sound professional judgement and adherence to authoritative guidance.
• • Produce accurate and compliant consolidated financial statements under IFRS, executing intricate consolidation procedures such as intercompany eliminations, goodwill accounting, non-controlling interest treatment, and adjustments for foreign operations and differing reporting dates.
• • Critically analyse and reconcile key differences between IFRS and other major accounting frameworks (notably US GAAP), evaluating the financial, strategic, and cross-border reporting implications of these divergences.
• • Assess the quality, reliability, and decision-usefulness of financial disclosures under IFRS (particularly those involving estimates, judgements, and uncertainties) and interpret their impact on stakeholders’ analysis and economic decisions.
• • Synthesise advanced consolidation and IFRS concepts into clear, professional outputs (such as technical memos, management briefings, or investor presentations), effectively communicating complex accounting treatments and their strategic and risk-related consequences to diverse audiences.

Course Contents

• Topic 1. Financial statement analysis under IFRS: an overview of basic concepts
• Topic 2. Revenue
• Topic 3. IFRS approach in Costing
• Topic 4. IFRS for SMEs
• Topic 5. Management measures and indicators for IFRS
• Topic 6. Presentation and disclosure in Financial Reporting
• Topic 7. Statement of Cash Flows
• Topic 8. Investments
• Topic 9. Accounting for Leases
• Topic 10. Dilutive Securities and Earnings per Share

Assessment Elements

• IFRS Application & Problem Solving
  Students resolve realistic, high complexity accounting scenarios requiring application of key IFRS standards (e.g., revenue under IFRS 15, leases under IFRS 16, financial instruments under IFRS 9, impairment under IAS 36). They must demonstrate professional judgement, reference relevant IFRS guidance, and justify their accounting treatments with clear reasoning. Grading focuses on technical accuracy, depth of analysis, and appropriateness of judgements.
• Consolidation Practice & Technical Accuracy
  Students prepare a complete set of consolidated financial statements for a hypothetical or real group of companies, including subsidiaries, associates, joint arrangements, and foreign operations. They must execute intercompany eliminations, account for goodwill and non-controlling interests, handle differing reporting dates, and adjust for foreign currency impacts. Submissions include the final statements, detailed working papers, and reconciliation schedules. Marking criteria: correctness of consolidation mechanics, completeness of adjustments, and clarity of supporting calculations.
• Comparative Analysis: IFRS vs Other Frameworks
  Students select 2–3 major accounting areas (e.g., revenue recognition, leases, financial instruments) and compare IFRS treatment with US GAAP (or another relevant framework). They analyse the differences, quantify potential effects on key financial metrics, and discuss strategic and reporting implications for multinational companies. Evaluation criteria: depth of comparative insight, use of authoritative sources, and relevance of practical examples.
• Critical Evaluation of Disclosures & Judgements
  Using real IFRS- compliant annual reports, students evaluate the quality and transparency of key disclosures (especially those involving estimates, judgements, and uncertainties). They identify potential red flags, assess whether disclosures enhance decision-usefulness, and suggest improvements. Grading emphasises critical thinking, evidence-based critique, and understanding of how judgements affect comparability and investor decisions.
• Professional Communication & Presentation
  Students produce a concise, professional-grade memo (1,200–1,500 words) summarising a complex consolidation or IFRS issue, its accounting treatment, and its business impact. This is followed by a 10-minute presentation to “senior management” or “investors,” with Q&A. Criteria: clarity, precision, ability to translate technical accounting into strategic insights, presentation skills, and responsiveness to probing questions.

Interim Assessment

• 2026/2027 4th module
  0.25 * IFRS Application & Problem Solving + 0.15 * Professional Communication & Presentation + 0.15 * Critical Evaluation of Disclosures & Judgements + 0.3 * Consolidation Practice & Technical Accuracy + 0.15 * Comparative Analysis: IFRS vs Other Frameworks

Bibliography

Recommended Core Bibliography

• Picker, R. (2016). Applying IFRS Standards (Vol. Fourth edition). Chichester, West Sussex, United Kingdom: Wiley. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=1639476

Recommended Additional Bibliography

• Lin, S., Riccardi, W. N., Wang, C., Hopkins, P. E., & Kabureck, G. (2019). Relative Effects of IFRS Adoption and IFRS Convergence on Financial Statement Comparability. Contemporary Accounting Research, 36(2), 588–628. https://doi.org/10.1111/1911-3846.12475

Authors

• Churakova Iiia Iurevna
• Soloveva Ekaterina Evgenevna