Challenges in the Preparation of Consolidated Financial Statements
The preparation of consolidated financial statements involves a wide range of technical and organizational challenges. The following are among the most common in practice.
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Divergent accounting standards and data inconsistencies across the group,
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Extensive regulatory requirements in financial and sustainability reporting,
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Identification and elimination of all intercompany transactions,
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Changes in the scope of consolidation due to acquisitions and disposals
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Resource constraints, as finance teams are occupied with day-to-day operations.
My Services for Your
Consolidated Financial Statements
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Alignment of local financial statements with the group’s accounting and valuation policies,
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Preparation of an accounting manual to harmonize accounting and valuation methods across the group,
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Technical support on complex accounting and valuation topics,
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Preparation of consolidated balance sheet, consolidated income statement, notes, and group management report, including CSRD sustainability reporting, cash flow statement, statement of changes in equity, and segment reporting under German GAAP (HGB) and IFRS,
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Intercompany elimination (payables/receivables, income/expenses), capital consolidation, and elimination of intercompany profits,
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Initial consolidation – Purchase Price Allocation (PPA), determination and disclosure of goodwill or negative goodwill (bargain purchase), and recognition of hidden reserves and liabilities,
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Deconsolidation, treatment of non-controlling interests (NCI), and intra-group reorganizations (mergers, demergers, carve-outs),
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Optimization of accounting and reporting processes,
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Implementation and development of Internal Control Systems (ICS),
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Coordination and communication with tax advisors, auditors, legal counsel, and banks.
My Approach
01. Project Initiation
╋ Objectives and scope definition
╋ Review of existing data, processes, and systems
╋ Definition of relevant group entities and key contacts
02. Planning
╋ Assignment of roles, responsibilities, and milestones
╋ Definition of the steps required to prepare the financial statements
╋ Alignment with internal and external project stakeholders
03. Execution
╋ Harmonization of local financial statements
╋ Performing the consolidation
╋ Preparation of balance sheet, P&L, and other reporting components
04. Quality Assurance
╋ Review and plausibility check of the financial statements
╋ Clarification of open items
╋ Regular reporting to the primary contact
05. Project Completion
╋ Finalization of the consolidated financial statement
╋ Documentation and handover of supporting documents
╋ Knowledge transfer and lessons learned
Let’s Talk About Your Project
Whether you require assistance with the preparation of your consolidated financial statements, IFRS-related questions, or the optimization of accounting and reporting processes, I am here to support you as an experienced partner.
Let’s connect and discuss how I can support you.