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IPSAS Training Course


IPSAS - Consolidations, Combinations and Interests in Other Entities (2 days)

Course Details

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Accounting for combinations of public sector entities and preparing consolidated financial statements are significant challenges for IPSAS preparers. This two-day program provides a comprehensive understanding of, and hands-on practice in, applying the IPSAS requirements for determining control, for consolidating subsidiaries and reporting associates and joint arrangements in separate and economic entity financial statements.

Our specialist instructors provide an in-depth review of the relevant standards. In addition they will consider consolidation boundaries at the whole of government level and the implications in relation to Government Financial Statistical (GFS) reporting:

  • IPSAS 34 Separate Financial Statements
  • IPSAS 35 Consolidated Financial Statements
  • IPSAS 36 Investments in Associates and Joint Ventures
  • IPSAS 37 Joint Arrangements
  • IPSAS 38 Disclosure of Interests in Other Entities
  • IPSAS 40 Public Sector Combinations

Methods of determining control, significant interest and joint control are demonstrated in an interactive group environment utilizing case studies, illustrative examples, and model financial statements. The program also gives delegates a sound understanding of the requirements and methodology for consolidation, and application of the equity method under IPSASs.

The course answers questions such as:

  • Which entities are required to produce consolidated or economic entity financial statements?
  • What are the boundaries for consolidation at the whole of government level and how does this relate to boundaries under GFS reporting?
  • How is control or significant interest determined?
  • What is the process of consolidation and what adjustments are required in relation to inter-entity transactions and balances and how are these impacted where there are non-controlling interests?
  • What is equity method accounting and who should use it?
  • How do transfers of assets from the investor to the investee and increases or decreases in ownership accounted for?
  • What is the difference between a joint venture and a joint operation, and how are interests in joint operations accounted for?
  • What treatments are permitted in the separate financial statements of the “investor”?
  • What disclosures are required?
  • What transitional provisions are permitted on first time application by first-time adopters of IPSAS?
  • How should entities account for public sector combinations, as either amalgamations or acquisitions?

Learning Objectives

  • Differentiate between the different levels of investment and identify the appropriate accounting treatment
  • Identify whether you have control, significant influence, joint control or other investments
  • Practice the preparation of consolidated financial statements for an investor and its controlled entity in accordance with IPSAS 35
  • Perform equity accounting for an associate or joint venture by applying IPSAS 36
  • Identify the two forms of joint arrangement and apply the appropriate accounting methods
  • Plan ahead for issues that arise when transitioning from the cash basis to the accrual basis of accounting pertaining to consolidations and interests in other entities
  • Understand the key challenges for complying with the new Standards IPSAS 34-38
  • Distinguish between the two types of public sector combination in IPSAS 40 and apply the relevant techniques
  • Learn the sources of IPSAS guidance that are available

Who Should Attend

Individuals with interests in or responsibilities for consolidation and interests in associates or joint arrangements and for combinations of entities in the public sector including:

  • Finance officers with group reporting responsibilities
  • Consolidations team
  • Finance and accounting managers responsible for managing joint operations
  • Government officials and project managers responsible for IPSAS transition
  • Accountants and finance staff of entities in the process of adopting IPSASs
  • Internal and external auditors of entities that have adopted IPSASs or are in the process of doing so
  • Accounting academics


  • Introduction
    • Application of IPSASB’s Conceptual Framework in relation to the reporting entity
    • Overview of requirements of the Standards
    • Distinguishing between different types of interests held
  • IPSAS 35 Consolidated Financial Statements
    • Who must prepare consolidated financial statements?
    • Consolidation boundaries at the whole of government level and comparison to GFS
    • Determining control
    • Consolidation method
    • Accounting for non-controlling interests
    • Accounting for changes in ownership interests and loss of control
    • Identification of, and treatment by, investment entities
    • Transition to IPSAS 35 by first-time adopters of IPSAS
  • IPSAS 36 Investments in Associates and Joint Ventures
    • Identifying significant influence
    • Equity method accounting
    • Practical issues;
      • Treatment of significant influence in the absence of an equity interest
      • Accounting for the initial and subsequent investment
      • Inter-entity transactions and balances
  • IPSAS 37 Joint Arrangements
    • Indicators of joint control
    • Distinguishing between joint operations and joint ventures
    • Accounting by the operator of a joint operation
    • Accounting for a participation in a joint arrangement by a party who does not have joint control
    • Practical implications for the operator and other venturers
  • IPSAS 38 Disclosure of Interests in Other Entities
    • Disclosure principles
    • Mandatory and optional disclosures
  • IPSAS 34 Separate Financial Statements
    • Permitted accounting treatments
    • Pros and cons of treatments and what is found in practice
    • Presentation and disclosure in the separate financial statements
  • IPSAS 40 Public Sector Combinations
    • Nature of public sector combinations
    • Scope of IPSAS 40
    • Classifying combinations
    • Accounting for amalgamations
    • Accounting for acquisitions
    • Transitional requirements

Teaching Method

  • Group live instruction with active participation encouraged, cases, examples, group work, open discussions
  • Illustration of consolidation requirements and methodology, including the application to non-controlling interests
  • Comparative demonstration of consolidation issues relating to associates and joint ventures
  • Extensive hands-on case studies completed in an interactive group environment to demonstrate key points and practical application
  • Reviews from published financial statements of consolidation, equity method and joint venture disclosures and of policies and accounting in respect of public sector combinations
  • All participants receive a comprehensive binder containing copies of the presentation slides, handouts and other course materials


The instructor for this course will be drawn from one of our core faculty of subject matter experts. Further details will be published at the earliest opportunity.


Our seminars take place in 4 star professional conference facilities, generally in city-centre hotels like the Marriott, Sheraton or Hilton brands. Detailed Joining Instructions are sent to all registered delegates by email approximately one month before the event. The Joining Instructions will confirm exact venue details and nearby (or onsite) hotel recommendations with bedroom rates where available. Coffee and lunch will be provided.

CPE/CPD Accreditation

IASeminars is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org .


Field of study: Accounting


Understanding of basic accounting principles based on any national standards in the public sector. No advance preparation is required for this course.