GROUP CONSOLIDATION
Group consolidation under IFRS and French GAAP
Consolidation presents the accounts of a group as those of a single entity, by eliminating intragroup transactions and aligning accounting policies. We prepare or review your consolidated financial statements under IFRS or under the French ANC 2020-01 regulation.
What the engagement covers
Depending on your organisation, we handle all or part of the consolidation process, from collecting your subsidiaries' reporting packages to producing the consolidated financial statements and notes. We can also act as reviewers, to secure accounts prepared by your teams before they go to the statutory auditors. We work in your consolidation software or, failing that, in a structured and documented environment that your teams can take over.
- Scope of consolidation and consolidation methods (full consolidation, equity method)
- Alignment adjustments to group accounting policies
- Translation of foreign subsidiaries' accounts and currency translation differences
- Reconciliation and elimination of intercompany transactions
- Deferred taxes and tax rate reconciliation
- Cash flow statement, statement of changes in equity and notes
- Documented working papers and answers to statutory auditors' queries
Who it is for, and when
We mainly work with mid-sized groups with revenue of €50m to €500m and subsidiaries in France and abroad. Typical situations include a first consolidation after an acquisition, a move from French GAAP to IFRS, a small or changing in-house team, a closing to accelerate, or the need for an outside review before the auditors' visit.
How we work
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Scoping: perimeter, accounting framework, closing timetable and split of roles with your teams.
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Collection: subsidiaries' packages or trial balances, consistency checks, intercompany reconciliations.
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Preparation or review: adjustments, translation, eliminations, deferred taxes.
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Financial statements: balance sheet, income statement, cash flows, changes in equity and notes.
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Audit close: documented working papers and answers to the auditors' queries.
FAQ
What is the difference between IFRS and French GAAP consolidation?
Companies whose securities are traded on an EU regulated market prepare their consolidated accounts under IFRS. Other French groups apply the ANC 2020-01 regulation or may opt for IFRS. Consolidation principles are similar, but the two frameworks differ on several topics, including leases, business combinations and financial instruments.
Can you work in our consolidation software?
Yes. We work in the main software packages on the market, including Talentia CPM, Anaplan Financial Consolidation, K-Shuttle and Cegid Consolidation. If your group consolidates in spreadsheets, we can work in your file or set up a documented environment, pending a possible change of tool.
Do you replace our team or support it?
Both are possible. Some groups entrust us with the entire preparation, others with part of it (translation, intercompany, deferred taxes, notes) or with a review before the auditors' visit. The agreed scope is set out in the engagement letter.