Which alternatives to consolidated financial statements as a reporting instrument for corporate groups?

Details

Supervisors

Stempnierwsky, Yvan

Faculty

Louvain School of Management

Degree label

Master [120] en sciences de gestion, à finalité spécialisée

Abstract

enThis thesis explores the concept and application of combined financial statements (CmFS) within the IFRS framework, particularly in the context of corporate restructurings such as mergers, carve-outs, and IPOs. While consolidated financial statements are strictly governed by IFRS 10, combined financial statements lack specific regulatory guidance, creating accounting challenges such as defining the reporting perimeter, presenting equity, and allocating intercompany transactions. Through an extensive review of academic literature, IFRS principles, and professional publications, this thesis demonstrates how the absence of formal standards for CmFS leads to divergent interpretations and varying practices among preparers. A case study of the Syensqo–Solvay demerger illustrates these technical challenges in a real world capital market transaction. The findings reveal that in the absence of a comprehensive IFRS standard, preparers must rely heavily on judgment, often guided by audit firm philosophies and listing requirements. The thesis concludes with recommendations to enhance comparability and transparency in CmFS preparation and outlines the potential benefits of more formalized regulatory guidance.