Author: BrizoSystem
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The Role of Consolidation in IFRS vs. US GAAP: Key Differences for Global CFOs
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Introduction: A CFO’s Dilemma Imagine this: your group headquarters in London reports under IFRS, but your U.S. subsidiary reports under US GAAP. When quarter-end arrives, you’re staring at two sets of rules, two sets of numbers, and one big question: how do I reconcile them into a single, credible set of consolidated statements? This is…
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What is a Deferred Tax Asset (DTA)?
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in AccountingA Deferred Tax Asset arises when a company has paid more tax or has tax-related benefits that can be used to reduce future tax liabilities. It’s essentially an accounting way of saying: “We’ve got a tax credit for the future.” How It Happens Example Key Points In short: A Deferred Tax Asset is like prepaid…
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Foreign Currency in Consolidation: Best Practices for Eliminating FX Noise
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Introduction For multinational groups, foreign currency is more than just an accounting technicality — it’s one of the biggest sources of complexity in consolidation. Exchange rate fluctuations can create FX “noise” in the consolidated financials: artificial gains, losses, and mismatches that don’t reflect the underlying business performance. Without careful handling, FX noise can distort revenue,…
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What is Impairment Reversal?
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in AccountingIn accounting, an impairment occurs when the carrying value of an asset on the balance sheet is higher than its recoverable amount (what the company can actually recover through use or sale). When this happens, the company records an impairment loss, reducing the asset’s value in the books. However, business conditions don’t always stay the…
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Intercompany Reconciliations: How to Streamline the Most Time-Consuming Step in Consolidation
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Introduction If you ask any group finance team what slows down the consolidation process the most, the answer is almost always the same: intercompany reconciliations. Each entity records transactions with its group counterparts — loans, sales, charges, dividends — but by the time month-end or year-end rolls around, the numbers often don’t line up. What…
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What is Quasi-Equity?
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in AccountingQuasi-equity is a type of financing that sits between debt and equity. It behaves partly like a loan and partly like an equity investment, giving funders repayment rights but also some of the upside tied to the performance of the business. It’s often used when a company is too risky for traditional loans but the…
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Intercompany Loans and Interest: How to Eliminate Them in Consolidation
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Introduction Intercompany loans are a common financing tool within corporate groups. A parent may lend funds to a subsidiary, or two subsidiaries may arrange a loan between themselves. On the surface, these transactions provide flexibility in managing liquidity across the group. But when it comes to preparing consolidated financial statements, these loans — along with…
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BrizoConnector is now officially available on the Intuit App Store!
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in NewsBrizoConnector is designed to seamlessly connect your QuickBooks Online data with BrizoSystem, making financial consolidation and reporting across multiple entities faster, easier, and more accurate. By integrating QuickBooks Online with BrizoSystem through BrizoConnector, businesses can: This availability makes it even easier for QuickBooks Online users in different regions to get started with BrizoSystem. 👉 You…
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Mastering Intercompany Dividend Elimination: A Comprehensive Guide for CFOs and Finance Teams
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Introduction Dividends are among the most common intercompany transactions in group structures. They are also one of the trickiest to manage in consolidation. While dividends represent cash returns to shareholders at the subsidiary level, they do not represent new income or external inflows at the consolidated group level. If not handled properly, intercompany dividends can…
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A Step-by-Step Guide to Building a Consolidated Cash Flow Statement
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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…