CONSOLIDATION

YOUR ISSUES:

In a developing environment, locally or internationally, your challenges are :

To give an economic representation of your group by standardizing the accounts of the different entities that compose it, adapting them to the group’s culture, translating the control of the parent company into its subsidiaries and defining the perimeter of the “external partners” Based on strong support from your existing teams.
To ensure a transition from a step-by- step consolidation solution to a software solution enabling rake consolidation to give a direct reading of the various consolidated data and allowing a natural restitution of data in French or IFRS format.
To Make the Group’s financial statements comparable to those of international groups by initiating a transition to IFRS.
Ensure a gradual transfer of skills

OUR METHODOLOGY:

We suggest we realize your project in 6 steps :

Step 1: Preliminary scoping of the mission

This step makes it possible to identify and plan the important parts that are to be dealt with at the beginning of the project:

Definition of project objectives
Finalization of the precise perimeter
Validation of the deployment strategy
Definition of the general project planning
Definition of the necessary procedures for the management of the project
Planning of general design workshops
Planning for implementation

Step 2: Design

This step involves analyzing in detail the needs in relation to the project perimeter:

Workshop account plan (analysis and implementation of the account plan in a suitable software)
Workshop consolidation rules
Workshop Bundle
Workshop Restitution
Workshop brochure
Workshop interface

At the end of this phase, we will propose an analysis document and a design document that must be validated by you before the beginning of the next phase.

Step 3: Settings and Realization

This step consists of implementing the elements described in the design file and sanctioning the implementation by carrying out the unit tests and integration:

Setting: harmonization of the plans of accounts, Identification of any modifications to be made to the standard setting of the proposed software (in particular: setting of the proof of tax)
Identification of temporary differences and permanent differences, tax value of balance sheet items, applicable tax rates, tax loss carry-forwards and / or tax deferrals, specific tax rules …
Identification of off-balance sheet commitments for each of the Group's entities
Development of interfaces
Unit tests
Data Integration Tests

Step 4: Data Recovery

The process of resuming the consolidation in the proposed tool proceeds as follows :

Codification of entities, currencies and tax rates
Setting up the correspondence tables (group account plans / standard software account plan)
Import of General Scales N-1
Import of general balances N
Entry of cash flows on items of fixed assets, depreciation, long-term financial or other liabilities, regulated provisions, other provisions
Entry of tax results and tax bases on temporary differences (to produce social tax proof)
Entry of items relating to financial leases, margins on inventories, retirement commitments, investment subsidies, etc.
Timing
Import and / or entry of inter-balance sheet balances (N-1 and N) and result
The verification related to published accounts, understanding variances, possible arbitrations, etc

Step 5: Holding and Subsidiary Training

Throughout the process, the consolidation teams will be involved and will work with us. The principle of this mission is to reconstitute the consolidation in a software tool in collaboration mode, but also – and above all – in the transfer of skills in relation to the tool so that the teams become autonomous.

A preliminary assessment of the accounting and fiscal technical level of the persons involved will allow to target the uncontrolled theoretical points and to prepare short and targeted trainings. A training component is therefore to be considered (development of the contents and supports by our firm, training and practical application on the proposed tool).

Step 6: Annual assistance

We suggest to assist you annually in the realization of your consolidation in a collaborative way the tool that we propose to you as follows: (the common tasks are generally carried out to the level of 2/3 by the customer and 1/3 by The firm).

Process	Our firm	Your Team
Preparation of the consolidation process	X
Bundle of consolidation		X
Reciprocal intercompany		X
Non-reciprocal intracompany	X	X
Manuel bookkeeping	X	X
Automatic bookkeeping control	X
Treatment of deferred taxes	X	X
Analysis of shareholders’ equity	X	X
Establishment of cashflow statement	X
Control the restitution states and the flow chart	X
Control of proof of tax	X
Synthesis and preparation of the annex and the report	X	X
Assistance to the CAC audit process	X	X