Impact of consolidated financial reporting vs separate financial reporting on financial performance of the business. Evidence from the United Kingdom

Ing. Hava Quni

Master's thesis

Abstract:

The thesis is devoted to identifying the impact of consolidated financial reporting and separate financial reporting on the financial performance of the chosen entity from the corporate group based in the United Kingdom. Relying on advantages and disadvantages on both financial reporting, a set of recommendations for further improvements under IFRS are proposed. The first chapter covers the general principles and concepts of group accounting, being focusing on items reported differently in consolidated and separate reporting. The second chapter starts with the chosen company overview of financial statements, and it continues with a breakdown of consolidated financial position and financial performance process by analyzing financial reporting impact through financial ratios. Lastly, the conclusion of impact of consolidated financial reporting and separate financial reporting on the financial performance of group accounting is summarized.

Abstract:

The thesis is devoted to identifying the impact of consolidated financial reporting and separate financial reporting on the financial performance of the chosen entity from the corporate group based in the United Kingdom. Relying on advantages and disadvantages on both financial reporting, a set of recommendations for further improvements under IFRS are proposed. The first chapter covers the general principles and concepts of group accounting, being focusing on items reported differently in consolidated and separate reporting. The second chapter starts with the chosen company overview of financial statements, and it continues with a breakdown of consolidated financial position and financial performance process by analyzing financial reporting impact through financial ratios. Lastly, the conclusion of impact of consolidated financial reporting and separate financial reporting on the financial performance of group accounting is summarized.

Keywords

Consolidated financial statements, Separate financial statements, Financial reporting, parent, subsidiary, group accounting.

Language used: English

Date on which the thesis was submitted / produced: 15. 5. 2020

Thesis defence

• Date of defence: 25. 6. 2020
• Supervisor: Ing. Oleksandra Lemeshko
• Reader: Ing. Bc. Jana Hvozdenská, Ph.D.

Masaryk University

Faculty of Economics and Administration

Master programme / field:
Finance and Accounting / Finance (Eng.)