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When the whole is different from the sum of its parts
We design and/or assume totally or partially the consolidation process of large national and international groups, from the data retrieval to the financial statements issuance, including the analysis of the main characteristics and requirements to be fulfilled by the consolidation process, the design of a consolidation process which will comply with the abovementioned requirements and the execution of the execution of the whole consolidation process of the Group constituted by the Company and its affiliates, according to the organizational chart and the current local consolidation GAAP, delivering the Consolidated Annual Accounts to the Company, as well as providing full assistance during the external audit process.
You can not untie a knot without knowing how it is done
It is common that the subsidiary of an international company settled in a different country keeps the accounting information in the Parent company or through an international Shared Services Center. In that situation, the accounting is performed according any international GAAP.
We also can find the opposite situation, when a Spanish company must report to a Parent company located in other country.
In these situations a conversion of the financial statements is required (from International to Spanish GAAP, or vice versa), through several adjustments and/or reclassifications to comply with regulations regarding tax or mercantile compliance.
GKM Consulting team has experience in the most important accounting principles (IFRS, US GAAP, UK GAAP, Japanese GAAP), as well as other less known (Danish GAAP, Brazilian GAAP, Argentina GAAP, Mexican GAAP…).
A project involving analysis and design of the consolidation process should comprise, amongst other, the following activities divided in four main steps:
Execution of the whole consolidation process of the Group constituted by the Company and its affiliates, according to the organizational chart and the current local consolidation GAAP, delivering the Consolidated Annual Accounts to the Company.
Start up, control and follow up of the reporting process previously designed.
Gathering of all data required for the work to be performed in the following phases.
Analysis and review of the information received from the subsidiaries.
Homogenization adjustments to Local GAAP.
Calculation of the negative or positive goodwill (if this is the first consolidation).
Chart of accounts conversion.
Conversion to local currency.
Calculation of consolidation adjustments and reclassifications.
Transfer price recognition (if applicable)
Preparation of the Consolidated Financial Statements according required GAAP.
Preparation of the Notes to be included in the Consolidated Annual Accounts, and other information required by the client’s management.
Support and technical accounting advice during the external audit of the Consolidated Annual Accounts, if needed.