On March 26, 2025 students of the Bachelor’s program in Finance, Accounting & Taxation had the opportunity to attend an exciting guest lecture by Sarah Krammer, MSc, tax consultant and senior manager at TPA IFRS-Solutions GmbH.
The lecture took place as part of the course “Group Accounting” and offered valuable insights into the equity method of group accounting.
What is the equity method?
The equity method is a method of measuring and accounting for investments in other companies, particularly when the investor has significant influence over the investee. The profits and losses of the subsidiary are included directly in the investor’s income statement.
Insights into the work of TPA tax consultants
Practical examples of the valuation of investments and their integration into consolidated financial statements were presented in the lecture. Emphasis was placed on impairment in the case of investment losses and the importance of due diligence for correct book valuation for tax purposes. A clear example of a holding company was used to illustrate how changes in equity and valuation losses are treated for accounting purposes. Another important point discussed during the fascinating presentation was data quality in group accounting. Incorrect data can cause considerable problems and therefore jeopardize the entire financial statements.
The lecture combined theoretical knowledge with practical insights and was therefore the perfect foundation for anyone wishing to advance their career in finance, accounting and tax.