Financial consolidation of multiple companies to produce legal consolidated financial statements is no easy task. Financial consolidation can be complicated by the type of investment, multiple currencies and complex group structures. CP – Consolidation is an application to automate this task. The CP – Consolidation application not only guides the user through the creation of actual consolidated financial statements it also can be used to create budget and forecast consolidated data as well.
CP – Consolidation is a state of the art financial consolidation software application. It can be used as a standalone application or completely integrated as part of a wider CP Suite corporate performance management solution.
CP Suite offers a flexible complete solution for companies of these types of structure, which conforms to local GAAP and IAS/IFRS specifications. Step by step, CP Cons takes you systematically through the entire consolidation process. Complicated and error-prone manual consolidation work now belongs to the past.
Financial Consolidation – Workflow
Users of CP – Consolidation are taken through the financial consolidation process step by step. The workflow is divided into various sections from creation of companies and reporting periods.
CLEAR FINANCIAL STRUCTURES
CP – Consolidation provides clear visual structures of group structures, The financial consolidation progress is visually displayed on each company.
Company chart of accounts are freely definable. In addition there are many editable template structures for IFRS and local GAAP reporting. Users of CP Finance can also use the structures already established as part of the integrated financial planning process.
CONSOLIDATED FINANCIAL STATEMENTS
After import of each companies financial statements the financial consolidation steps are carried out. At each stage of the consolidation manual adjustments can be made if required. After each consolidation steps have been carried out intermediate financial statements are automatically prepared. The consolidation steps are:
- Creation of Aggregated financial statements
- Elimination of inter-company investments
- Elimination of inter-company liabilities
- Eliminating inter-company profit / losses
- Calculation of deferred taxes
Company Consolidation – Standard Reports
CP – Consolidation is a complete out of the box financial consolidation tool. There is a complete set of standard report templates included as part of application. This ensures rapid implementation.
- Consolidated Balance Sheet and Consolidated Profit and Loss Account
- Consolidated Cash Flow Statement
- Reconciliations on all levels
- Complete lists of postings
- Statements of Changes in Fixed Assets and in Equity, Analysis of Provisions, any additional analyses
- Statistical Details
- Participating Interests
- Notes to the Consolidated Financial Statement
- Segment Reports
- Development of Minority Interests
All Reports are exportable to Microsoft Excel, Microsoft Word, PDF
DETAILED COMPANY & SEGMENT REPORTING
The required components of a consolidated financial statement include the Statement of Changes in Fixed Assets and the Statement of Changes in Equity, which are of course provided in CP – Consolidation. Apart from these, however, any number of additional analysis structures can be displayed, so you have an extensive customized reporting system at your disposal. Statistical details, such as staff numbers or lease liabilities, can also be defined for the reporting to be complete.
Capital market-oriented parent companies are required to produce a segment report as a supplementary component of the annual financial statement. In CP Consolidation, segment reporting and statutory consolidation are both processed in one step. To comply with IFRS specifications, segment consolidation takes place on two levels, separated into an intra-segment consolidation and an inter-segment reconciliation.
More than Statutory Company Consolidation
CP – Consolidation not only produces the statutory financial consolidated returns but it can be used for many more internal reporting purposes.
Prepare company consolidation simulations, changes in group structure companies purchase, sales etc.
Prepare budget and forecast consolidated figures. Lenders and shareholders require more detailed consolidated figures. Not only actual consolidated financial statements can be produced but budget and forecast results can also be generated and compared. Import plan data or use the complete link to CP-Finance the integrated financial planning application ensures rapid consolidation of budget and forecast data all prepared within the single solution.
INTEGRATION WITH CORPORATE PLANNER
CP – Consolidation can be used as a standalone application. In addition CP – Consolidation can be used as part of a wider corporate performance management solution. It directly links with the other Corporate Planner applications, CP – Finance for integrated financial planning and CP – Operative Controlling – for all operational corporate performance management needs.