User:Mgt88drcr/project01

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

• 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

Business combination and restructuring

Acquisition accounting

• 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

General

• Consolidation, EY

1. Financial Reporting Developments - Consolidated and other financial statements: Noncontrolling interests, combined financial statements, parent company financial statements and consolidating financial statements
2. Financial Reporting Developments - Consolidation and the Variable Interest Model: Determination of a controlling financial interest
3. Practical matters for the c-suite - To consolidate or not to consolidate - that is the question
4. 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

Equity accounting

• 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

Foreign currency translation

• 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

Account reconciliation

• Reconciliation (accounting)

Current regulatory framework

• 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

• 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

• 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

• Group audit issues

http://www.chinaacc.com/upload/html/2013/06/27/lixingcuna9d1fdf11a784d53809600c1da6e89d4.pdf

Process management and automation

https://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

Finance computing framework

• Separation of concern

Stage 1: Data collection

• Data extraction from internal/external database
• Data extraction from Excel workbook
• Data validation and authorization
• Data version control

Stage 2: Data transformation

• Standardization of non-standardized data
• Generation of validation list
• Data posting with rewriting posted data

Stage 3: Data storage

• Data posting control maintenance
• Updating master data
• Scheduled refresh datacube

Stage 4: Reporting

• On-demand reporting
• Scheduled analytical alert

Multiway model

Level 1 automation: Aggregation

A 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

• Version control for audit trial purpose
• Version control for reporting purpose

Level 3 automation: Elimination

• Across different dimensions (Legal entity, business unit, geographical region, time)
• Across different transaction natures (Investing, operating and financing)

Level 4 automation: Standardization

• 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 account codes and other dimensional codes

Level 5 automation: Tagging

Tagging 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

• Traditional process base alert (e.g. completed processing, error triggered)
• User-defined analytical alert

Software selection and implementation

Eternal triangle

• Software developer
• Implementation consultant
• User

Information asymmetry

• Adverse selection
• Moral hazard

Education and training

• 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

• Financial Systems Consolidations Manager

http://www.linkedin.com/jobs2/view/9743948

• Financial Consolidation

http://www.indeed.com/jobs?q=Financial+Consolidation&l=

Others

• 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

• Consolidated financial statement