Financial statement grouping and consolidation of the parent and subsidiaries in a unique report
Objective of the unique report
The objective of the unique report is to have the information analysis of all companies or business units that are part of a business group in the same format and with homogenized accounting.
The financial statement grouping of the parent and subsidiaries in a unique report is an instrument that allows us to have individual and group data in one file in order that the analysis and comparisons are the most effective and efficient.
Advantages of the unique report
The financial statement grouping of the parent and subsidiaries in a unique report offers several benefits to the business group, such as:
Why it is necessary to request the unique report service to UR Global?
Frequently asked questions on financial statement grouping of the parent and subsidiaries in a unique report
Yes, although consolidation is not compulsory, in all cases is important for the group management. When intercompany operations are localized, we will have strength to understand more easily if subsidiaries are profitable or not; companies that would not survive on their own if they did not have the parent’s financial support.
If we have the knowledge, we can recognize if the group’s growth is and added value or is stopping. In implementing the necessary adjustments, we remove that false view of stability. If to the above we add the conciliation proceedings that will take place at the beginning, the comparisons will be more real because we can analyze the same items with the same concepts in each of the companies or business units.
- Statement of income and balance per company, business unit and country in local currency.
- Statement of income and balance of the Group in Euros; grouped and/or consolidated.
- Comparisons with previous years and/or budgets.
- Financial ratios that we defined together in previous meetings according to the needs of the main parent (liquidity, borrowing or leverage, profitability, management or activity…)
- That file will go along with a report where will be explained the relevant data produced in each of the subsidiaries (difference in sales, costs, results…).
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