Consolidation Fundamentals
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…
What Is a Subsidiary? How Groups Determine Control Under IFRS 10, FRS 102, and ASC 810
Before a group can begin consolidating, it must know which entities to consolidate. This sounds like a straightforward question —…
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…
Financial Consolidation Software for Small Multi-Entity Groups: What SMEs Need and What They Can Ignore
Search for financial consolidation software and you will find a market dominated by tools built for finance teams of ten…
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…
How to Handle Prior-Period Adjustments in Consolidated Financial Statements
Niamh was three weeks into the Year 5 audit when the message arrived from Castleton Products, the group’s 80%-owned manufacturing…
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…
A Complete Consolidation Worked Example: From Entity Trial Balances to Consolidated Financial Statements
Most consolidation guides explain what an intercompany elimination is. Far fewer show you exactly what happens to the numbers when…
Why You Should Never Start Intercompany Eliminations Before Reconciling Balances
Under time pressure at the end of quarter, the intercompany schedules for four of your six entities have arrived and…