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Financial Consolidation (Planning, Preparation, Optimization (Manage…
Financial Consolidation
Planning, Preparation, Optimization
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Onboard Acquisition
New acquisition (subsidiary) needs to work hand-in-hand with holding company to find an optimal way to be integrated in consolidation
Manage Entity Structure
Piloting and rolling out new consolidation process/ content (e.g. Green-house gas report, diversity)
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Plan the process
Adjust consolidation demands of subsidiaries based on Global changes (e.g. Trump, Brexit)
Plan the Process
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Holding company and subsidiaries need to work together to align their consolidation timeline, esp when they have different fiscal year
During Consolidation
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Communication
Having various means of documenting and communication, for example, emails, spreadsheet and ERP system, makes it hard to keep track of consolidation process status
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Child-Specific
Understanding the required standard of holding company and translating (subsidiary's) closed books to that standard is a big effort
For a subsidiary company, getting data out of the local system and just to give to the holding company is a painful experience
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Newly acquired subsidiary needs to adjust their fiscal year to the holding company, as well as the plan for consolidation
Parent-Specific
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Holding company needs to convince the auditors their structure, process and data is solid
Holding company needs a way to track at summary and detail level the progress of subsidiary's submissions
Holding company should understand the purpose of a range of subsidiary's accounts and map it to the consolidated charts of accounts