Latest blogs
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What is a Deferred Tax Asset (DTA)?
A Deferred Tax Asset (DTA) is a balance sheet asset representing tax that the company has effectively overpaid relative to its accounting results — and will recover in future periods through lower tax payments. Understanding how DTAs arise, when they can be recognised, and how they interact with the group consolidation process is important for…
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Foreign Currency in Consolidation: Best Practices for Eliminating FX Noise
Not all FX-related differences in a consolidation are created equal. Some represent genuine economic impact — the real effect of exchange rate movements on the group’s assets, liabilities, and results. Others are noise: artificial variances produced by inconsistent processes, different rate sources, or mismatched timing that would disappear if the same policies were applied consistently…
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What is Impairment Reversal?
Impairment reversal is the accounting recognition of an asset’s recovery in value following a prior impairment loss — permitted under IFRS when the conditions that caused the original impairment have improved, subject to a ceiling that prevents overstating the asset’s carrying value. Understanding impairment reversal requires understanding the impairment framework it operates within, the ceiling…
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Intercompany Reconciliations: How to Streamline the Most Time-Consuming Step in Consolidation
Ask any group finance team what slows down the consolidation close most, and the answer is almost always the same: intercompany reconciliations. Not the elimination entries — those are mechanical once the balances are agreed. The problem is getting to agreement. Each entity records its intercompany transactions independently. By month-end, the numbers often don’t match.…
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What is Quasi-Equity?
Quasi-equity is a broad term for financial instruments that sit between debt and equity in a company’s capital structure. Like debt, they often involve repayment obligations or priority rights over pure equity holders. Like equity, they may give investors participation in the company’s upside, and they absorb losses before senior creditors. The precise features vary…