Every cent counts
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financial Consolidated reporting

for multiple entites, M&A, business owners and CFOs

 

consolidation

The Corporations Act 2001 s292 gives exemption from the requirement to prepare group accounts to small groups but not medium sized groups.

It is form of reporting to bring all subsidaries together, under the imbrella of a parent company, the financial statements of all its subsidiary companies. It combines all the financials into a single source to meet ASIC and IFRS accounting standards.

Why is it required

  • Consolidated financial statements provide a true and fair view of an organisation’s financial health across all divisions and subsidiaries:

  • They are required when one company owns more than 50% of the outstanding common voting stock of another company, but there are many rules and regulations to account for.

  • Consolidation software can help organisations improve the process as well as respond quickly to market changes, make better-informed decisions, and capitalise on new opportunities

Consolidation Accounting Process

  1. record intercompany loans

  2. charge corporate overheads

  3. charge payroll expenses

  4. Complete adjusting entries.

  5. asset, liability, and equity account balances

  6. review subsidiary financial statements

  7. Eliminate intercompany transactions

  8. Review parent financial statements

  9. Close subsidiary books

  10. Close parent company books

  11. Issue consolidated financial statements

If you have any questions in relation to the consolidation process, please feel free to contact our Team.