Which Consolidation services can be provided?
Set up a Group Consolidation function from scratch
Consolidary can help setting up the consolidation function, which typically involves:
- Design and implement the most efficient consolidation process (including MS Excel models, XBRL reporting, reporting packages, reporting Chart of Accounts, reporting calendar and communication with subsidiary finance teams)
- Validation of consolidation set-up with applicable accounting standards and External Auditor
- Training staff at HQ- and subsidiary level
- Running the consolidation process, or provide on-site support to your team(s)
Expand the scope of consolidation by acquisition of subsidiaries
Newly acquired subsidiaries need to be included in the consolidation scope. Apart from preparing the accounting entries connected to acquisitions, Consolidary can help with integrating the new subsidiary/subsidiaries in the group consolidation process. Notwithstanding the consolidation system you are using (MS Excel, your ERP or a dedicated consolidation tool), our support includes:
- Mapping of the new entities’ accounting chart of accounts to your reporting chart of accounts
- Connecting new subsidiary reporting to the Group’s XBRL reporting structure (if applicable)
- Training and communication with the subsidiary/subsidiaries finance team(s)
Integrate subsidiary reporting from various ERPs by applying XBRL
Find out how XBRL Global Ledger can faciliate your consolidation process when your subsidiairies are working on various ERP systems, whilst not loosing data at transactional level!
Implement dedicated consolidation software
At some point in time you may want to implement a dedicated consolidation tool to further increase efficiency of the process and reduce chances of manual error.
Consolidary can help you define functional requirements and work with your system integrator to make the project a succes!
iXBRL conversion to comply with ESEF: why is it important?
Reporting using the European Single Electronic Format (ESEF) is mandatory for annual financial reports of companies that are listed on a EU market, over the first financial year that starts on, or after 1 January 2020.
ESEF is introduced by the European financial markets supervisor ESMA. The use of ESEF should make life easier for reporting entities and will improve accessibility, analyses and comparability of financial statements for users (analysts, investors and the like).
To comply with the ESEF requirement, annual financial report documents will have to be prepared in XHTML format, which is human-readable and can be looked at using a standard web browser. Further, if a company includes consolidated financial statements under IFRS in its annual financial report, elements thereof will have to be tagged with an XBRL label, as part of ESEF.
XBRL tags need to be embedded in the XHTML document using a technology called inline XBRL (iXBRL). In practice it means that you will have to attach XBRL labels to elements in your financial statements (for example Fixed assets, or Turnover). These labels are derived from a kind of dictionary (a “taxonomy” in the XBRL world) issued by ESMA. This ESEF taxonomy was built on an already existing IFRS taxonomy and is therefore IFRS compliant. If the ESEF taxonomy does not cover a specific element from your financial statements, there is a possibility to extend it.
The requirement will be rolled out in phases: initially only the top-sheets (balance sheet, income statement, cash flow statement, changes in equity) need to be labelled. in a second phase explanatory notes will have to be labelled as well.
See also the blog on this topic.
Working with us
Interested in working for Consolidary? Contact Jan Breken at jbreken@consolidary.com to hear more.
Our Fees
We appreciate the fact that you are considering our services!
Depending on your specific needs, we offer the following fee models:
- An hourly fee (for individual advice and support assignments).
- A fixed monthly fee (for recurring services, according to an estimation of average hours)
- A bespoke project fee (for specific projects, based on estimation of hours)
We can make you a fee proposal upon request. You will find out that Consolidary’s fees are very competitive!