Consolidated figures are regularly discussed in the financial world. More often than not, this specifically involves combining figures from different companies, in order that way to arrive at the group result. But what does this actually mean in practice?
There are a great deal of companies working with an external software package for their consolidation. In this case, the procedure is to first export the financial data and then to import and process it in the separate application. However, an easier alternative is to use the fully integrated possibilities of Adfinity.
First and foremost, several companies and entities can be managed in Adfinity. User-related accesses and authorisations can be set for each file, and it is then possible to choose whether or not to share certain data between the files. That way, for instance, it can be decided to work with different general accounting plans, although with a common supplier and customer database.
If working with a group of companies with different accounting plans, it is best to define a mapping according to the consolidated accounting plan for each plan. This is child’s play for Adfinity, as can be seen in the image below.
So as to prevent a distorted image being presented, elimination entries must be performed. For example, if companies invoice each other for certain services, this impacts on turnover and this impact has to be corrected. In Adfinity, we have the option of indicating these mutual entries using inter-company codes. We are then able to draw up listings without any problem, in order to compare and verify the movements between the various companies. Lastly, Adfinity is also able to assist you in entering elimination transactions. So as to keep our accounting ‘clean’, we can potentially enter these different transactions in a separate consolidation file.
Be sure to get in touch should you have any further questions about IFRS, managing a consolidation with exchange rates or other more in-depth subjects; we also offer the right solutions for issues such as these.
