Consolidation Fundamentals
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…
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…