Consolidate Smarter, Report Better.

Introduction Cash is the lifeblood of any business—and for groups with multiple subsidiaries, knowing where cash comes from and where it goes is critical. A consolidated cash flow statement (CFS) provides this big-picture view across the entire group. But building one isn’t as simple as stacking together each subsidiary’s statement. In fact, relying only on…

In group accounting, one of the biggest challenges is ensuring that financial statements present an accurate and fair picture of the business as a whole. This means more than simply consolidating numbers from multiple entities—it also requires eliminating intercompany transactions. If left unadjusted, intercompany activities can inflate revenue, expenses, assets, and liabilities, leading to misleading…

When companies grow into multiple entities, transactions between those entities become inevitable. But when it comes time to prepare consolidated financial statements, these intercompany balances can distort the true financial picture. That’s where intercompany eliminations come in. In this guide, we’ll walk through what intercompany eliminations are, the challenges finance teams face, the different types…

Why Intercompany Dividends Must Be Eliminated When consolidating financial statements across multiple entities within a group, one essential adjustment is the elimination of intercompany dividends. These are dividends paid by one subsidiary to another entity within the same group—such as a holding company or another subsidiary. While dividends are legitimate transactions between companies, they must…