On April 7, 2026, MMag. Marina Mittermaier of TPA Steuerberatungs GmbH, a leading Austrian tax consulting and auditing firm, delivered a practical guest lecture in the “Consolidated Financial Reporting” course as part of the Bachelor’s program Finance, Accounting, and Taxation.
The focus was on the equity method and its application in consolidated financial reporting. The lecture provided a clear and practical overview of the accounting treatment of equity investments depending on the parent company’s influence. While equity investments of over 50 percent result in full consolidation, associated companies and joint ventures are valued using the equity method. This method is based on recognition at cost followed by adjustments to the proportionate equity, whereby profits increase the book value, losses reduce it to a maximum of zero, and distributions decrease it.
Differences in Accounting
Mittermaier explained key differences between the Austrian Commercial Code (UGB) and International Financial Reporting Standards (IFRS), particularly with regard to hidden reserves, goodwill, and impairment. Under the UGB, goodwill is amortized on a scheduled basis, whereas IFRS does not provide for such amortization. In addition, specific issues such as the treatment of losses when the book value is negative and changes in the ownership interest were discussed.
Practical examples, such as those involving successive share acquisitions, deconsolidations, and the calculation of equity book value, illustrated how theoretical principles are applied in corporate practice.
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