Consolidated accounts

In today’s context of globalization and increasingly diversified economic activities, multinational companies must manage ever more complex structures. Consolidated financial statements are a vital practice for such companies, enabling them to present a comprehensive and coherent financial overview of their operations. At Efficience Expertise, we offer specialized services in financial consolidation to help businesses achieve their financial and strategic objectives.

Financial consolidation is an accounting process that involves aggregating the financial statements of multiple legal entities belonging to the same group in order to produce consolidated financial statements. These statements provide an overall view of the financial position of the group, as if it were a single economic entity.

Financial consolidation serves to:

• Provide a true and fair view: Present an accurate picture of the financial position and performance of the group as a whole.
• Facilitate decision-making: Support executives in making strategic decisions based on a global vision of the company.
• Meet legal requirements: Ensure compliance with regulatory and accounting standards for financial reporting.
• Enhance transparency: Improve transparency for shareholders, investors, and other stakeholders.

The process of financial consolidation typically includes several key steps:

The first step involves gathering individual financial statements from the group’s entities. This data must be standardized to allow aggregation.

Adjustments are made to eliminate intercompany transactions (transactions between entities of the same group) to avoid double-counting. This includes eliminating reciprocal receivables and payables, internal income and expenses, and cross-holdings.

For international groups, it is often necessary to convert the financial statements of foreign subsidiaries into the reporting currency of the consolidated accounts.

The standardized and adjusted financial statements are then aggregated to produce consolidated financial statements, including the consolidated balance sheet, consolidated income statement, consolidated cash flow statement, and consolidated notes.

Consolidating financial statements offers many advantages for multinational companies:

Consolidated statements provide an overview of the group’s financial situation, making it easier to evaluate performance and make strategic decisions.

By consolidating accounts, companies can better identify and manage financial risks at the group level, enhancing their resilience to economic uncertainties.

Consolidated financial statements improve financial transparency, boosting the confidence of investors, shareholders, and other stakeholders.

Consolidation allows for optimization of the group’s tax burden by using losses from some entities to offset profits from others.

Multinational companies are often required to comply with international accounting standards (IFRS, US GAAP), and financial consolidation enables them to meet these obligations.

At Efficience Expertise, we offer comprehensive expertise in financial consolidation for businesses of all sizes and sectors. Our services include:

We provide guidance on best consolidation practices and support companies throughout the process to ensure the quality and compliance of consolidated financial statements.

We help establish efficient consolidation processes, including data collection, necessary adjustments, and currency conversion.

We offer training on the principles and techniques of financial consolidation for finance teams to strengthen their skills and independence.

We recommend and implement consolidation tools tailored to each company’s specific needs, simplifying and automating the consolidation process.

To learn more about our financial consolidation services and find out how we can support you, feel free to contact us. Our experts are available to answer all your questions and provide personalized support.

Efficience Expertise – Your trusted partner for financial consolidation and management.