Overview of our services…
Consolidary supports your entire group reporting process
- starting or expanding your Group Consolidation function
- dealing with complex IFRS accounting analyses
- implementation or updating IFRS standards
- providing (accounting) support for your corporate transactions (M&A, carve-outs etc)
- quarterly and (semi-) annual reporting
- iXBRL conversion of your financial statements to meet ESMA’s European Single Electronic Format (ESEF) requirement
Our services
Consolidary’s services cover the full reporting chain from group consolidation to filing with regulators
Group Consolidation support
Flexible support of the group consolidation function
In detail…
The need for preparing consolidated financial statements usually arises when one company acquires a majority shareholding in another company.
Complexity can kick in when the acquired company has multiple subsidiaries, works with different currencies or when the acquiring company purchases less than 100%.
Where we can help
- Setting up of a Group Consolidation function from scratch
- Expanding the scope of consolidation by acquiring subsidiaries
- Integrate subsidiary reporting from various ERPs by applying XBRL
- Implement dedicated consolidation software
See FAQ for more details on these services
In detail…
In many parts of the world, companies are applying International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) to prepare their financial statements.
Where we can help
Prepare accounting memo’s on complex transactions and validation with external auditor
Contracts are signed with a major supplier to provide a joint service. Revenues are shared but who should be recognizing the revenue and how does the other partner book its share? Just an example to illustrate that accounting for specific transactions can be tricky and accounting guidance is not always black or white.
Consolidary helps you to make the analyses using the appropriate accounting guidance, document the analyses in an accounting memo and discuss the position with various stakeholders.
Company ABC acquired a minority 15% in company Z and, as part of the transaction, obtained significant Board representation and participation in various business committees of company Z. Based on the ownership %, ABC would not have “significant influence” over Z, however its influence through Board and Committees gave ABC “significant influence” over Z and hence ABC needs to apply “equity method” accounting for this investment.
We helped management of ABC to analyse this transaction, document conclusion and discuss with relevant stakeholders including ABC’s external audit firm.
IFRS Accounting Analyses
Taking complexity out of IFRS
In detail…
Companies need to apply accounting principles when preparing financial statements. In many parts of the world, companies are applying International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) (read more about IFRS geographies).
The relevant accounting principles should be considered for every (recurring- or non-recurring) transaction executed by a company.
Where we can help
Impact assessment of newly issued-, or changed accounting standards
Over time, accounting standards evolve, are updated, replaced or complete new standards are introduced. For example IASB introduced the so-called “Big 3” Standards recently, replacing already existing standards:
IFRS 9 “Financial Instruments” (2018)
IFRS 15 “Revenue from Contracts with Customers” (2018)
IFRS 16 “Leases” (2019)
Depending on your industry, changes in standards can have a significant impact on your accounting. Consolidary can help you anticipate those impacts, and help to implement the changed or newly issued Standard.
With the introduction of IFRS 15 a thorough review of all revenue-generating activities of Company XYZ was done with business owners to ensure compliance with the changed recognition criteria of the new Standard. As it turned out, more than 10% of revenues that used to be recorded at a “point in time” had to be recorded “over time” instead.
We helped management to make the analyses, discuss conclusions with various stakeholders (Board of Directors, Supervisory Board, External Auditor) and prepared the transition accounting entries.
In detail…
Companies need to apply accounting principles when preparing financial statements. In many parts of the world, companies are applying International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) (read more about IFRS geographies).
The relevant accounting principles should be considered for every (recurring- or non-recurring) transaction executed by a company.
Where we can help
M&A support (accounting due dilligence, accounting topics, post-deal integration)
For most companies, Mergers & Acquisitions (M&A) is not business as usual. M&A projects can have a significant strain on Finance teams as they need to deal with additional workload on top of their every-day responsibilities. That’s where Consolidary can help. As part of your project team, we can take care of accounting due dilligence, review draft agreements for potential accounting implications, manage purchase price allocation process together with your valuation experts and work with the subsidiary finance team in the post-close phase for integration in the financial close process.
When company X was in take-over discussions with company Y, we joined the deal team of company X to focus on all accounting-related matters in the due diligence process. As company Y reported under a local GAAP we did a GAAP comparison to identify potential differences to IFRS, which was applied in company X’s consolidated financial statements. Based on this analyses we were able to anticipate a GAAP conversion and prepare the correcting journal entries on the acquisition balance of company Y, when the deal ultimately closed.
Financial Reporting
Quarterly / (semi-)Annual External Reporting
In detail…
External financial reporting is usually the last step in the financial close cycle of companies. Depending on the profile of your company, there may be specific requirements to your external reporting that are set by regulatory bodies. In more than 140 countries financial statements need to comply with IFRS when a company is listed, and is application of IFRS allowed when a company is not listed.
Where we can help
Manage quarterly and (semi-)annual Financial Statements
From the output of your ERP or consolidation system, we can build the external report for your semi-annual or annual financial statements, in full compliance with IFRS.
If your company reports results on a quarterly basis, we can help you prepare the financial communication and guard consistency between your financial system, external report, press release and analyst presentation.
In detail…
European financial markets supervisor ESMA introduces the European Single Electronic Format (ESEF).
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.
Reporting using 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.
Where we can help
Consolidary provides functional support with the implementation- and subsequent maintenance of the “translation” of your financial statements to the ESEF taxonomy, as well as with any extension needed to the ESEF taxonomy.
Consolidary partners with ParsePort, a supplier of a technical iXBRL conversion solution. This solution effectively merges your annual financial report in any source format (MS Word, PDF) with the XBRL tags into xHTML.
See FAQ and our News page for more detailed information on the ESEF requirement, and iXBRL.