Consolidation
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Foreign Currency Translation in Consolidation: Techniques and Best Practices
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Introduction In today’s global business landscape, most corporate groups operate across multiple countries — and therefore, multiple currencies. While this diversification brings opportunity, it also introduces one of the most…
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Deferred Taxes in Consolidation: Simplifying a Complex Accounting Area
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Introduction Deferred taxes are among the most complex and misunderstood areas in financial consolidation. They bridge the gap between accounting profit and taxable profit — reflecting timing differences that reverse…
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Intercompany Loans and Interest: Accounting, Elimination, and Common Mistakes
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Introduction: The Hidden Complexity Behind Simple Loans At first glance, intercompany loans appear straightforward — one entity within a group lends money to another. However, when it comes to financial…
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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…
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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…
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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…
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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…
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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…
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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)…