Intercompany transactions between US parent companies and Xero-using subsidiaries must be eliminated for ASC 810 consolidation and documented for IRS Section 482 transfer pricing compliance. BrizoConsol automates both.
Every transaction between entities within your group — if left unadjusted — overstates group revenue, costs, and balances. The overstatement is silent and grows with every intercompany trade.
ASC 850 (Related Party Disclosures) requires US GAAP entities to disclose the nature of related party relationships and material transactions. SEC registrants face additional disclosure requirements under Regulation S-K Item 404.
Intercompany eliminations are not one-size-fits-all. Each transaction type involves different accounts and different elimination logic. BrizoConsol handles all of them.
When one group entity sells goods or services to another, the seller records revenue and the buyer records a cost. Both must be eliminated — group revenue is reduced by the intercompany sales figure, and the corresponding cost is removed simultaneously.
When one entity lends money to another within the group, one side shows a receivable and the other shows a payable. Both must be eliminated so the group balance sheet does not include an asset and liability that cancel each other out.
Management fees, IT charges, shared service allocations, and head office overhead recharged from a parent to subsidiaries create intercompany income in the parent and intercompany expense in the subsidiary — both must be eliminated from the group P&L.
When a subsidiary pays a dividend to its parent, the parent records dividend income. That income must be eliminated from the group P&L — the dividend is a transfer of existing group equity, not new income generated from external sources.
When one entity sells a fixed asset to another within the group, any profit on the transfer is unrealised from the group's perspective — the asset is still within the group. The gain must be eliminated and the asset restated at its original cost to the group.
The parent's cost of investment in each subsidiary is eliminated against the subsidiary's share capital and pre-acquisition reserves. This elimination establishes goodwill (or negative goodwill) at acquisition date and is a foundational step in every consolidation.
BrizoConsol's elimination engine runs automatically on every consolidation. Here is exactly what it does.
BrizoConsol pulls the general ledger from every connected Xero organisation nightly via Xero's OAuth. Mixed-platform groups — Xero organisations alongside MYOB, QuickBooks, or Zoho Books entities — are all included in the same consolidation run. All transactions — including those in intercompany accounts — are available for matching and elimination.
Runs automatically · Nightly syncBrizoConsol identifies intercompany transactions using accounts you flag as intercompany during setup, and by matching account codes that appear on both sides of an entity relationship. No manual cross-referencing of each period's transactions is needed.
Auto-detect + account-code matchingMatched intercompany pairs are eliminated automatically. Any transaction where the two sides don't reconcile — different amounts, missing counterpart — is flagged in the elimination review dashboard before the consolidation is finalised, so you can investigate and correct before the report is produced.
Mismatch alerts before finalisationEvery elimination — automatic or manual — is logged with the originating entities, account codes, amounts, and basis of elimination. The audit trail is permanent, exportable, and presented alongside the consolidated statements for reviewer sign-off.
IFRS 10 · ASC 810 · Auditor-readyXero is the most widely used cloud accounting platform in Australia, New Zealand, and the UK — and is popular across Southeast Asia and South Africa. Multi-entity groups headquartered in these markets, with entities spanning AUD, NZD, GBP, SGD, and other currencies, are BrizoConsol's core Xero user base.
Australian and New Zealand groups using Xero typically operate as a Pty Ltd or Ltd holding entity owning Pty Ltd or Limited operating subsidiaries. BrizoConsol consolidates all Xero entities under AASB 10 (Australia) or NZ IFRS 10 (New Zealand), with FCTR calculated automatically per AASB 121 / NZ IAS 21.
UK groups using Xero typically operate as a plc or Ltd parent with Ltd or LLP subsidiaries. BrizoConsol consolidates under UK GAAP (FRS 102) or IFRS 10, applies closing rates to Balance Sheet items and average rates to P&L under IAS 21, and calculates the CTA for each foreign subsidiary.
Xero is widely used across Australia, New Zealand, Singapore, and South Africa. Groups with entities in multiple APAC jurisdictions — spanning AUD, NZD, SGD, ZAR, and other currencies — can consolidate all Xero entities in BrizoConsol in a single run, with multi-currency translation applied automatically.
Groups that grew through acquisition often have some entities on Xero and others on MYOB or QuickBooks. BrizoConsol connects to all three platforms independently and consolidates them in a single run — no manual exports, no separate spreadsheet for each system.
US groups preparing consolidated financial statements under US GAAP must comply with ASC 810 Consolidation, with foreign currency translation governed by ASC 830 Foreign Currency Matters. BrizoConsol automates ASC 810-compliant consolidation for US groups using Xero, including NCI attribution under ASC 810-10-45 and CTA calculation under ASC 830 included in Other Comprehensive Income (OCI).
ASC 810 requires a US parent entity to consolidate all subsidiaries it controls through a majority voting interest or through variable interest entity (VIE) relationships. NCI (non-controlling interest) is presented separately within equity under ASC 810-10-45. BrizoConsol applies ASC 810-compliant logic — including full intercompany elimination and NCI attribution — across all connected Xero entities automatically.
US groups with foreign subsidiaries apply ASC 830 Foreign Currency Matters. BrizoConsol applies the current rate method — closing rates to Balance Sheet items, weighted average rates to P&L — and calculates the Cumulative Translation Adjustment (CTA). The CTA is included in Other Comprehensive Income (OCI) in the consolidated Balance Sheet, consistent with ASC 220 and ASC 830 requirements.
US public companies filing with the SEC under Regulation S-X must present consolidated financial statements audited by a PCAOB-registered firm. BrizoConsol produces audit-ready consolidated output — with full elimination audit trails and period-by-period CTA schedules — that can be handed directly to your external auditors. All adjustments are traceable to the originating Xero entity and transaction.
US-based groups typically operate subsidiaries in Canada (CAD), the UK (GBP), Australia (AUD), India (INR), and the UAE (AED) — each requiring USD translation under ASC 830. Many use Xero in their US entities and Xero, MYOB, or other platforms overseas. BrizoConsol consolidates all of these currencies in a single run, applying ASC 830-compliant rates automatically.