Consolidation Fundamentals
Cash Pooling at Consolidation: Why the Group Balance Sheet Shows Much Less Cash Than the Sum of Its Parts
Sophie had been group finance manager for eight months when the CFO asked a question she did not have an…
When One Subsidiary Sells a Fixed Asset to Another: Eliminating the Profit and Correcting the Depreciation at Consolidation
James had been group controller at Meridian Manufacturing for three years and had developed a reliable feel for the consolidation.…
Management Consolidation vs. Statutory Consolidation: Why They’re Different and Which One Your Group Needs
At a recent board meeting, a director of a four-entity Australian property group asked the CFO whether the consolidated accounts…
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…