Multi-Entity Accounting
Disposing of a Professional Services Subsidiary: Why the Consolidated Gain and the Entity Gain Are Completely Different Numbers
When a professional services group sells a subsidiary — a regional practice division, a specialist consulting arm, or a standalone…
When a Project Goes Wrong: Accounting for Onerous Contracts Across a Construction Group
The group board had known for two quarters that the commercial fit-out contract in Birmingham was in trouble. Materials costs…
The Revenue That Disappears at Consolidation: Eliminating Management Fees and Royalties in a Manufacturing Group
The group financial controller was reviewing the draft consolidation when she noticed that Group Holdings Ltd was showing £420,000 of…
E-commerce Group Cash Flow Statement: Where the Money Actually Goes
Nina had prepared the quarterly board pack and was expecting questions about the strong trading performance. NorthCart Group — a…
Acquiring a Retail Chain Mid-Year: Purchase Price Allocation, Goodwill, and Why the First Period of Ownership Looks Less Profitable Than You Expected
When Pinnacle Retail Group completed its acquisition of Strand & Co, a twelve-store women’s fashion chain, the deal team handed…
Brand Royalties in a Restaurant Group: What Eliminates at Consolidation, What Doesn’t, and Why It Depends on Who Owns the Restaurant
When Marcus, the group finance director of Meridian Restaurant Group, prepared the annual consolidation, the numbers in the IP entity…
The Disposal Gain That Doesn’t Exist: Eliminating Intragroup Development Profits When Your DevCo Sells to Your PropCo
James is the group controller for Oakfield Property Group. When he closes the March year-end, Oakfield Developments Ltd — the…
Earn-Outs in Professional Services Acquisitions: Why the Contingent Consideration Accounting Only Exists in Your Group Accounts
Professional services acquisitions are structured differently from most deals. When a corporate group acquires a manufacturing business or a property…
Selling a Machine to Your Own Subsidiary: Why the Disposal Gain Is Fictional and What to Do With It
When a manufacturing group restructures its production capacity, it is common for assets to move between entities. A pressing machine…
Intragroup PPE Construction: Why Your Consolidated Balance Sheet Is Overstating Fixed Assets — and How to Fix It
The group financial controller at a family-owned logistics and construction business had been running the consolidation for three years before…