Direct consolidation

Sommaire

PART 1 ONCE UPON A TIME … THE CONSOLIDATION 
1 The slow evolution of consolidation requirements.
1.1 The 1970s: The pencil and eraser age
1.2 The 1980s: The beginnings of the computer age
1.3 The 1990s: The search for a miracle solution
1.4 The 2000s: Y2K and IFRS
2 What can we expect in the future?
2.1 The structure of the data to consolidate and its processing in consolidation
2.2 The reconciliation of inter-company balances: is there hope? 
2.3 IFRS and Local Gaap
2.4 Statutory consolidation and reporting: unified consolidation
2.5 Group structure
2.6 Financial communication 
2.7 Impact of future technological changes on consolidation
3 Conclusion
PART 2 BASICS OF CONSOLIDATION TECHNIQUES 
1 THE ECONOMICAL, FINANCIAL AND LEGAL CONTEXT OF THE CONSOLIDATION 
1.1 Groups of companies
1.2 Financial consolidation statements
1.3 Consolidation: Useful information?
2 CONSOLIDATION: A STEP BY STEP PROCESS
2.1 Step 1: Identify the companies to include in the consolidation scope
2.2 Step 2: Collect the information from each company correctly and in time 31
2.3 Step 3: Translate all the information received into the consolidation currency 
2.4 Step 4: Identify all intercompany differences and ask for explanations 
2.5 Step 5: Book all necessary consolidation adjustments depending on group situation and consolidation rules
2.6 Step 6: Process all necessary eliminations to get a consolidated set of information 
2.7 Step 7: Report consolidated figures to all addressees
3 CONTROL AND FINANCIAL PERCENTAGES7
3.1 The control percentage
3.2 The financial percentage.
3.3 When different types of shares represent the capital of a company 
3.4 Some groups with more complex structures
3.5 Control percentage – Financial percentage.
3.6 Algorithm to calculate indirect financial percentages in complex group structures
4 THE CONSOLIDATION METHODS.
4.1 Global integration method 
4.2 Proportional integration method 
4.3 The equity method
4.4 Consolidated reserves of a company
4.5 Comparison between the different consolidation methods 
4.6 The value of a company from a consolidation point of view
5 THE CONSOLIDATION TECHNIQUES
5.1 The technique of stage consolidation
5.2 The direct consolidation technique
5.3 Why applying a percentage on the investments when eliminating them? 
6 THE CURRENCY TRANSLATION
6.1 Currency translation principles
6.2 Currency translation of a balance sheet and a P&L
6.3 How do we consolidate foreign companies?
6.4 Currency translation of flows?
6.5 How to manage historical rates on the equity accounts?
6.6 Consolidation adjustments in local currency
7 INTERCOMPANY MATCHING ANALYSIS
7.1 Some important principles about intercompany matching 
7.2 Intercompany matching adjustments: some examples
8 CONSOLIDATION ADJUSTMENTS 
8.1 Methodology
8.2 A company doesn't apply the group's rules in its statutory accounts
8.3 Disposal of an asset between two companies, with a group profit
8.4 Elimination of stocks margins
8.5 Leasing not booked in balance sheet
8.6 Deferred tax adjustments
8.7 Elimination of dividends in a classical situation
8.8 Elimination of dividends paid by a foreign company 
8.9 Elimination of interim dividends
8.10 Statutory write-off of a consolidated financial investment
8.11 Difference on opening reserves
8.12 Acquisition of a company with a badwill
8.13 Acquisition of a company with a goodwill 
8.14 Disposal of consolidated shares to 3rd Parties .
9 THE ELIMINATION PROCESS
9.1 What has been done until now?
9.2 Global integration companies
9.3 Proportional integration companies
9.4 Equity method companies
9.5 Elimination of intercompany positions
9.6 Elimination of financial investments and equity of each company
PART 3 EVOLUTION OF CONSOLIDATED ACCOUNTS 
1 EVOLUTION OF ASSETS AND LIABILITIES ACCOUNTS
1.1 Flows on each balance sheet account
1.2 Flows and consolidation process 
1.3 Flows on intercompany accounts
1.4 Flows related to asset disposal between companies 
2 EVOLUTION OF EQUITY ACCOUNTS
2.1 Content of equity accounts
2.2 Evolution of consolidated reserves
2.3 A status board to justify consolidated reserves evolution 
2.4 Consolidated reserves status board: A case study
3 EVOLUTION OF TRANSLATION ADJUSTMENTS
3.1 Some important principles
3.2 Variation analysis from a theoretical point of view
3.3 Case study 
4 EVOLUTION OF MINORITY INTERESTS
4.1 On which accounts are calculated the Minority interests?
4.2 How to explain variations?
4.3 Case study
5 EVOLUTION OF PARTICIPATION AT EQUITY VALUE
5.1 When Equity value and Minority Interests are the two sides of the same mirror
6 THE CASH FLOW STATEMENT
6.1 About the cash flow statement and its utility
6.2 A cash flow statement presentation
6.3 Let’s build a statutory cash flow statement 
6.4 Flows for the consolidated cash flow statement
6.5 How would finally a consolidated cash flow statement look like? 
6.6 Let’s build a consolidated cash flow statement 
6.7 Some traps to avoid when producing a consolidated cash flow statement 
PART 4 SPECIAL CONSOLIDATION TOPICS
1 UNUSUAL GROUP STRUCTURES 
1.1 Chain of equity method companies
1.2 Equity method company owned by a global integration company
1.3 Proportional integration company owned by a global integration method company
1.4 An equity method company owns shares of a global integration method company
1.5 Consolidation of a consortium 
2 CAPITAL TRANSACTIONS
2.1 Capital increase with a change of financial percentage during the consolidation period
2.2 Dividends paid by issuing new shares
2.3 Dividends paid on the basis of different types of shares representing the capital
3 IN/OUT CONSOLIDATION SCOPE
3.1 Acquisition of a subgroup
3.2 Disposal of a subgroup
3.3 Disposal of shares of a foreign company to 3rd Parties 
3.4 Change of consolidation method during the year
4 RESTRUCTURATION OF A GROUP
4.1 Internal group disposal of a company
4.2 Absorption of a company 
4.3 Merge of two companies
4.4 Deconsolidation of a company
4.5 Liquidation of a company.
5 SOME PARTICULAR SITUATIONS THAT HAPPEN ONLY TO OTHERS
5.1 Segmented consolidation
5.2 Break even price when selling a company
5.3 Family group consolidating for the first time
5.4 What is the value of a company?
5.5 Disposal and acquisition of the same company within the year 
5.6 Acquisition of a company with negative equity 
5.7 Existence of minority interests when acquiring 100% of a company
5.8 When a group is changing its parent company 
PART 5 ORGANIZATION OF A CONSOLIDATION AND FAST CLOSE
1 FIRST CONSOLIDATION OF A GROUP 
1.1 The very initial choices
1.2 The consolidation scope
1.3 The consolidation rules
1.4 The Auditors
1.5 The information system
1.6 The tasks of the consolidation office
1.7 Human resources
1.8 Software resources 
1.9 Consequences of a first consolidation for subsidiaries.
2 THE CONSOLIDATION BUNDLE 
2.1 Basic principles and structure
2.2 Content 
2.3 Validation rules
3 FAST CLOSE
3.1 Before the consolidation 
3.2 During the consolidation
3.3 After the consolidation
PART 6 CONSOLIDATION CASE STUDY
1 OBJECTIVES OF THIS CASE STUDY
2 THE GROUP TO CONSOLIDATE 
3 CONSOLIDATION OF YEAR 1
4 CONSOLIDATION OF YEAR 2
5 EVOLUTION OF CONSOLIDATED ACCOUNTS
6 CONSOLIDATED CASH FLOW STATMENT
7 CONCLUSION.
PART 7 CONSOLIDATION QUIZZ
1 QUIZZ 1 (+)
2 QUIZZ 2 (++)
3 QUIZZ 3 (+++)
4 CORRECT ANSWERS: SUMMARY
5 CORRECT ANSWERS: QUIZZ 1
6 CORRECT ANSWERS: QUIZZ 2
7 CORRECT ANSWERS: QUIZZ 3
PART 8 INTERNATIONAL CONSOLIDATION GLOSSARY
1 ENGLISH / FRENCH
2 ENGLISH / NEDERLANDS
3 ENGLISH / GERMAN
4 ENGLISH / ITALIAN
5 ENGLISH / SPANISH
6 ENGLISH / CHINESE
7 ENGLISH / MALAYSIAN
8 ENGLISH / ARABIC