Mgt88drcr is a qualified accountant and graduate of a master degree program in professional accounting. On 28 November 2013, I was invited to join the Wikipedia:WikiProject Business/Accountancy Taskforce. The taskforce covers all aspects of accountancy include:
- financial and non-financial
- numerical and non-numerical
- manual basis or computerized / automated environment
After searching and reviewing some of articles, knowing that there are lacking of articles in relation to the historical development and current issues of consolidated financial statements, so my articles editing will be covered these areas.
History
edit- Walker, R. G. Consolidated Statements. New York: Arno Press, 1978.
http://books.google.com.hk/books?id=eCbP-kdoVJoC&pg=PR2&lpg=PR2&dq=Walker++Consolidated+Statements++New+York++Arno+Press+1978&source=bl&ots=nfSZcPtZtS&sig=m2qLCde6DufLUBFfPwkn-CKsipw&hl=en&sa=X&ei=kR-jUqOxMq-0iQebvoDYDA&ved=0CEoQ6AEwBw#v=onepage&q=Walker%20%20Consolidated%20Statements%20%20New%20York%20%20Arno%20Press%201978&f=false
- J.R. Edwards and K.M. Webb, The development of group accounting in the united kingdom to 1933
http://www.accountingin.com/accounting-historians-journal/volume-11-number-1/the-development-of-group-accounting-in-the-united-kingdom-to-1933-2/
- The Process of Accounting Innovation: The Publication of Consolidated Accounts in Britain in 1910
http://www.accountingin.com/accounting-historians-journal/volume-18-number-2/the-process-of-accounting-innovation-the-publication-of-consolidated-accounts-in-britain-in-1910/
- Eri Kanamori, The Development of Group Accounting in United Kingdom: The Essential Contribution of F.R.M. de Paula
http://www.ritsbagakkai.jp/pdf/425_05.pdf
- The Evolution of Consolidated Financial Reporting in Australia
- R G Walker, Consolidated Statements: a History and Analysis, The University of Sydney
http://ses.library.usyd.edu.au/bitstream/2123/2401/1/Frontmatter-Consolitdated_statements.pdf
- Didier Bensadon, Beginnings of financial reporting and premises of consolidation of accounts in the French aluminium industry, 1921-1939.
http://hal.archives-ouvertes.fr/docs/00/64/05/03/PDF/Beginnings_of_financial_reporting_and_premises_of_consolida_.pdf
- Stephen A.Zeff, Insights from Accounting History
http://books.google.com.hk/books?id=crHE8tCpemwC&pg=PA341&lpg=PA341&dq=Walker++Consolidated+Statements++New+York++Arno+Press+1978&source=bl&ots=a_hv1_KYau&sig=YQn3KOI-Njls0pcZxNhMUnHiMq4&hl=en&sa=X&ei=kR-jUqOxMq-0iQebvoDYDA&ved=0CEUQ6AEwBQ#v=onepage&q=Walker%20%20Consolidated%20Statements%20%20New%20York%20%20Arno%20Press%201978&f=false
Accounting practices
editBusiness combination and restructuring
editMerger accounting
editAcquisition accounting
edit- Consolidation (business)
- Goodwill (accounting)
- Divestment
- Demerger
- Multinational corporation
- Consolidation theories and push-down accounting: achieving global convergence
http://www.aabri.com/manuscripts/10442.pdf
Consolidation methods
editGeneral
edit- Consolidation, EY
- Financial Reporting Developments - Consolidated and other financial statements: Noncontrolling interests, combined financial statements, parent company financial statements and consolidating financial statements
- Financial Reporting Developments - Consolidation and the Variable Interest Model: Determination of a controlling financial interest
- Practical matters for the c-suite - To consolidate or not to consolidate - that is the question
- Comment Letter - Consolidation: Principal vs. agent analysis
http://www.ey.com/UL/en/AccountingLink/Current-topics-Consolidation
- Evidence of the effect of alternative consolidaiton accounting techniques on the finnancial decisions of users
http://business.highbeam.com/438285/article-1G1-78789237/evidence-effect-alternative-consolidation-accounting
- The Reporting Entity and Consolidated Financail Statements
http://www.academia.edu/3471794/The_Reporting_Entity_and_Consolidated_Financial_Statements
Full consolidation method
editMinority interest
editProportional accounting
editEquity accounting
edit- Equity method
- Associate company
- Applying the Equity Method as a means of Consolidation in the Public Sector: Experiences in OECD countries
http://pd.zhaw.ch/publikation/upload/204218.pdf
- Hong Kong Financial Reporting Standards — HKICPA issues new standards on consolidation, joint ventures and disclosures 2011
http://www.iasplus.com/en/publications/hong-kong/models/hong-kong-financial-reporting-standards-2014-hkicpa-issues-new-standards-on-consolidation-joint-ventures-and-disclosures-2011
Change in group structure
editLegal structure
editManagement structure
editForeign currency translation
edit- Robert G. Ruland and Timothy S. Doupnik, Foreign Currency Translation and the Behavior of Exchange Rates
http://www.personal.psu.edu/sst5034/Scholarly%20Articles/155136.pdf
- IFRS, Module 30 – Foreign Currency Translation
http://www.ifrs.org/Use-around-the-world/Education/Recent-publications/Documents/Module30_Version_2011_09.pdf
- Konrad W. Kubin, Accounting For Foreign Currency Translation: Current Problems In Historical Perspective
http://www.accountingin.com/accounting-historians-journal/volume-2-numbers-1-4/accounting-for-foreign-currency-translation-current-problems-in-historical-perspective/
- Foriegn currency translation: New accounting standards in Australia
http://www.wacra.org/PublicDomain/IJCRA%20xx_iv_IJCRA%20pg451-460%20Vlady.pdf
- Foreign currency matters - Ernst & Young
Type of currencies/amounts
editTransaction currency/amount
editFunctional currency/amount
editPresentation currency/amount
editExchange rate types
editClosing rate
editAverage rate
editHistorical rate
editComposite rate
editForeign currency translation methods
editCurrent/noncurrent method
editMonetary/nonmonetary method
editTemporal method
editCurrent rate method
editAdjustments
editGAAP adjustments
editIFRS
editHK GAAP
editJapan GAAP
editPRC GAAP
editUS GAAP
editElimination adjustments
editInvestment account elimination
editInter-company sales and purchases
editInter-company trade and non-trade balance
editUnrealized profits/(losses)
editLoans and advances
editInventories
editAccount reconciliation
editCurrent regulatory framework
edit- Consolidated Financial Statements - HKIFRS 10
http://app1.hkicpa.org.hk/ebook/HKSA_Members_Handbook_Master/volumeII/hkfrs10.pdf
- Conceptual framework for financial reporting
http://catalogue.pearsoned.co.uk/assets/hip/gb/hip_gb_pearsonhighered/samplechapter/KothariCh2.pdf
- Interpretation 18: Consolidation and Equity Method - Potential Voting Rights and Allocation of Ownership Interests
http://www.hkicpa.org.hk/file/media/section6_standards/standards/interpretation18.pdf
Issues and debates
edit- GUO Qin1 ,YUAN Xueying2, The Goodwill Issue in the Consolidation Accounting
http://www.seiofbluemountain.com/upload/product/201009/2010cwjrhy08a2.pdf
- Current issues in consolidation policy in wake of Enron
http://picker.uchicago.edu/Enron/Weil.pdf
- Consolidated Financial Statements Major Changes Coming!
http://www.nysscpa.org/cpajournal/2008/208/essentials/p26.htm
- Surprise - New Consolidation Rule May Affect Private Equity
http://www.uic.edu/classes/actg/actg516rtr/Readings/Off-BS/Surprise%20-%20%20New%20Consolidation%20Rule%20May%20Affect%20Private%20Equity.htm
Different industrial sectors
edit- Syntax of consolidated financial statements: the impact on credit-manager's decision making
http://epublications.bond.edu.au/cgi/viewcontent.cgi?article=1037&context=discussion_papers
- Applying the consolidation model to fund managers
http://www.kpmg.com/Global/en/IssuesAndInsights/ArticlesPublications/IFRS-Practice-Issues/Documents/IFRS-practice-issues-consolidation-model.pdf
Audit and assurance
edit- Group audit issues
http://www.chinaacc.com/upload/html/2013/06/27/lixingcuna9d1fdf11a784d53809600c1da6e89d4.pdf
Process management and automation
edithttps://en.wikipedia.org/wiki/User:Mgt88drcr/project01a
- William C. Sasso, Architectures for Financial Consolidation: A Comparative Study
http://archive.nyu.edu/bitstream/2451/14494/1/IS-87-58.pdf
- Financial Reporting and Consolidation - G-Global
www.group-global.org/storage_manage/download_file/11845
- Deloitte, Financial close, consolidation and reporting
http://www.oracle.com/us/solutions/ent-performance-bi/financial-close-consolidation-wp-079891.pdf
- Emma Snider, Four tips for faster financial consolidation
http://searchfinancialapplications.techtarget.com/feature/Four-tips-for-faster-financial-consolidation
- The Top 10 Consolidation and Reporting Pitfalls and How To Avoid Them
http://businessfinancemag.com/planning-budgeting-amp-reporting/top-10-consolidation-and-reporting-pitfalls-and-how-avoid-them
- Renewing your Close, Consolidate, Report Process for Performance Insight and Impact
http://xtalks.com/financewebinar2.ashx
- Consolidation Software Is a Key to Faster Closing
http://robertkugel.ventanaresearch.com/2012/05/10/consolidation-software-is-a-key-to-faster-closing/
- Financial System Considerations in IFRS Conversion Projects
http://www.ifrs.com/pdf/10414-378_IFRS_IT_White_Paper_WEB_FINAL.pdf
- Top 10 Findings From Gartner's Financial Executives International CFO Technology Study
http://www.financialexecutives.org/KenticoCMS/Communities/Committees/Finance---IT-(CFIT)/CFIT-files/Top-10-Findings-from-Technology-Issues-Survey.aspx
Manual vs computerization
editComputerization vs automation
editFinance computing framework
editStage 1: Data collection
edit- Data extraction from internal/external database
- Data extraction from Excel workbook
- Data validation and authorization
- Data version control
Stage 2: Data transformation
edit- Standardization of non-standardized data
- Generation of validation list
- Data posting with rewriting posted data
Stage 3: Data storage
edit- Data posting control maintenance
- Updating master data
- Scheduled refresh datacube
Stage 4: Reporting
edit- On-demand reporting
- Scheduled analytical alert
Multiway model
editLevel 1 automation: Aggregation
editA simplex form of aggregation is 1+1=2 by using calculator. However, aggregation is not limit to this sum function. It also includes average, count, maximum, minimum as etc. The preparation of consolidated financial statements is most frequent use the sum function to aggregate financial data for a group of companies.
The scope of aggregation is mainly to aggregate homogeneous group of data (i.e. standardized data) despite it may involve a large number data files and records when these data files contain many reporting dimensions such as ledger code, voucher date, accounting period, account code, project code, department code, business unit code contracting party code, quantity, unit code, unit price, original amount, currency code, exchange rate, equivalent amount etc.
All possible combination aggregation results can very significant. However, certain combination aggregation results can be relevant for management decision such as profit and loss for each business unit across different accounting period and other aggregation results can be relevant for statutory audit such as consolidated trial balance of a group with breakdown by companies.
- Aggregation for different scenarios
- Management: Budget, actual, project and forecast
- Statutory: Actual local GAAP, Actual IFRS
- Aggregation performance
- Number of dimensions
- Number of records
Level 2 automation: Versioning
edit- Version control for audit trial purpose
- Version control for reporting purpose
Level 3 automation: Elimination
edit- Across different dimensions (Legal entity, business unit, geographical region, time)
- Across different transaction natures (Investing, operating and financing)
Level 4 automation: Standardization
edit- Differing transaction and reporting currencies
- Differing convertibility of currencies
- Differing sovereign credit ratings
- Differing units of measurements
- Differing time zones and geographical locations
- Differing regulatory environments
- Differing date and amount formats
- Differing year end dates
- Differing accounting systems
- Differing data and master file formats
- Differing accounting policies and practices
- Differing measurement and recognition
- Differing allocation
- Differing amortization and depreciation
- Differing disclosure and presentation
- Differing measurement and recognition
- Differing account codes and other dimensional codes
Level 5 automation: Tagging
editTagging is everyday life you may use, for example, tagging of mp3 files with multiple registration of tags, tagging of photos associated with your friends.
In addition, tagging is widely use for document management system in order to support efficient searching of required documents based on selected criteria of tags.
For the purpose of preparation of consolidated financial statements, there are two main kinds of tagging:
- Tagging of each multiway processing base on system-defined tags
e.g. these system-defined tags including user, processing date, multiway system, status, data source
- Tagging of master records base on user-defined characteristics of master records
e.g. to reclassify a large number of master records including product codes, account codes, staff code, customer code
- Tagging of transactions base on user-defined characteristics of data source
e.g. any string with "loss", "worst" and etc. as included in transactions can be tagged as pre-defined analysis code attributed to specific dimension.
An effective tagging implementation can enrich and simplify the preparation of consolidated financial statements when management demand to analyze the group performance by different dimensions.
Level 6 automation: Alert
edit- Traditional process base alert (e.g. completed processing, error triggered)
- User-defined analytical alert
Technological development
editInternet vs world wide web
editDesktop vs mobile
editData center vs cloud
editSoftware selection and implementation
editEternal triangle
edit- Software developer
- Implementation consultant
- User
Information asymmetry
editEducation and training
edit- Risk reporting and analysis
http://nanyangbusinessschool.ntu.edu.sg/undergrad/common/contents/courseoutline/co_AC3102_AA306.pdf
- CIMA Paper
http://www.cimaglobal.com/Documents/Student%20docs/2010%20syllabus%20docs/F1/F1Nov11fmarticlepart2.pdf
Career
edit- Financial Systems Consolidations Manager
http://www.linkedin.com/jobs2/view/9743948
- Financial Consolidation
http://www.indeed.com/jobs?q=Financial+Consolidation&l=
Others
edit- Victor-Octavian Müller, Developments and enquiries in the field of consolidated financial statements
http://doctorat.ubbcluj.ro/sustinerea_publica/rezumate/2010/contabilitate/Muller_Victor_EN.pdf
- Robert Parker and Christopher Nobes
http://mfile.narotama.ac.id/files/Accounting%20&%20Financial/Comparative%20International%20Accounting%20(10th%20Edition)/Chapter%2017%20%20Consolidation.pdf
- Encyclopedia of Credit
http://www.encyclopediaofcredit.com/Consolidated-Financial-Statements
- Business Combinations and Consolidated Statements Bibliography
http://maaw.info/BusinessCombinationsBibliography.htm
- Frank Clarke, Geaeme Dean and Kyle Oliver, Corporate collapse, Accounting, Regulatory and Ethical Failure
http://books.google.com.hk/books?id=EGwWmEjL6hoC&pg=PA358&lpg=PA358&dq=R+G+Walker,+Consolidated+Statements:+a+History+and+Analysis,+The+University+of&source=bl&ots=RkXywlf4q6&sig=XiIgxivKqZKduenz5I_r7_c9ULI&hl=zh-TW&sa=X&ei=Wo-iUuiFPJGukgXfuYFQ&ved=0CFIQ6AEwBDgK#v=onepage&q=R%20G%20Walker%2C%20Consolidated%20Statements%3A%20a%20History%20and%20Analysis%2C%20The%20University%20of&f=false
- The STRENGTH MATTERS™ CFO Working Group
http://www.strengthmatters.net/sitebuildercontent/sitebuilderfiles/smi_financial_reporting_paper_summary_4-10.pdf
- Economic Analysis of Financial Regulation
- International Managerial Finance
http://wps.aw.com/wps/media/objects/1924/1970895/ChapterIMF.pdf
- The Introduction of Accounting Principles for Consolidated Financial Statements in Japan
http://www.alliedacademies.org/Publications/Papers/JIBR%20Vol%209%20SI_1_%202010%20p%201-22.pdf
- Paul Taylor, Consolidated Financial Reporting
http://books.google.com.hk/books?id=dOmrLm5Jq4AC&pg=PA13&lpg=PA13&dq=Walker++Consolidated+Statements++New+York++Arno+Press+1978&source=bl&ots=l7rww7xuMZ&sig=mPuUjP4E3FA-fExNjQ9LPGqI7NI&hl=en&sa=X&ei=kR-jUqOxMq-0iQebvoDYDA&ved=0CEgQ6AEwBg#v=onepage&q=Walker%20%20Consolidated%20Statements%20%20New%20York%20%20Arno%20Press%201978&f=false