Consolidation Fundamentals
BrizoElim — Enhanced Intercompany Elimination Detection
Intercompany eliminations fail quietly. The receivable is on Entity A’s books. The payable is on Entity B’s books. Both figures…
The Five Accounts That Only Exist in Your Consolidated Financial Statements
Tom has just been appointed CFO of an Australian professional services group with four entities. He’s a strong finance leader…
AASB 16 Leases in Group Consolidation: A Practical Guide for Australian Multi-Entity Groups
David is the CFO of an Australian retail group structured around a common PropCo/OpCo arrangement. The property holding company (PropCo)…
FRS 102 Associates and Joint Ventures: The Equity Method for UK Multi-Entity Groups
A UK manufacturing group held a 35% stake in a specialist components supplier for eleven years, accounting for its share…
Accounting Policy Alignment Before Consolidation: What to Standardise and How to Document It
A consolidated group is required to prepare its financial statements using uniform accounting policies. IFRS 10 paragraph B87 states this…
How to Find the Source of a Consolidation Difference
Lena had inherited the consolidation model when her predecessor left without a handover. She understood the structure of the model…
Why Doesn’t My Consolidated Balance Sheet Balance?
Nadia had been staring at the same number for forty minutes. Total assets: £8,432,000. Total liabilities plus equity: £8,085,000. The…
Unrealised Profit in Inventory: How to Eliminate Intragroup Margins From Closing Stock at Consolidation
When one group entity sells goods to another, the selling entity records a profit on that sale. From the perspective…
Intragroup Leases in Consolidation: How to Eliminate Ghost IFRS 16 Assets When Landlord and Tenant Are Both in the Group
When one group entity owns a building and leases it to another group entity, something awkward happens at consolidation. The…
Fiscal Year Alignment in Group Consolidation: Rules, Options, and the Three-Month Rule Explained
One of the less-discussed but practically significant challenges in group consolidation is the fiscal year mismatch. A parent company reporting…