Intercompany Eliminations
Learn how to identify and eliminate intercompany transactions to ensure accurate group financial reporting.
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…
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)…
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…
Intercompany Management Fee Eliminations: How to Remove Intragroup Charges From Consolidated Accounts
Management fees are one of the most common intragroup transactions in any multi-entity group — and one of the most…
Intercompany Naming Conventions: How to Structure Account Codes, Labels, and Journal Descriptions Across Your Group
It was month three of a new group controller’s tenure when she sat down to do the first intercompany reconciliation…
The Intercompany Elimination Schedule: How to Build the Register That Runs Your Group Close
Three weeks after the year-end close, the external auditors asked a straightforward question: could the group controller produce a complete…
Intercompany Revenue Eliminations: How to Remove Intragroup Sales From the Consolidated P&L
It was the first time Omar had run the group consolidation on his own. He pulled the trial balances from…
Intercompany Loan Eliminations: A Practical Guide to the Complications That Matter
The basic elimination of an intercompany loan is simple enough: the loan receivable in the parent’s accounts and the loan…
Intercompany Dividends in Consolidation: Elimination Entries and Common Complications
When a subsidiary pays a dividend to its parent, the parent records dividend income and the subsidiary’s retained earnings fall.…
Intercompany Eliminations: A Complete Guide for Group Consolidation
When a parent company sells goods to its subsidiary, both sides of that transaction end up in the accounting records.…