The Rise of Group Consolidation & Budgeting
The work of Group Consolidation & Budgeting usually involves the manipulation of massive volumes of heterogeneous data which originates from the combination of different dimensions eg multi-company, multi-company-group, multi-headquarter,multi-department, multi-business-unit, multi-budget-owner, multi-location, multi-currency, multi-project, multi-period, multi-system and can further complicated by the following major scenarios types:-
► Objectives of reporting
► Nature of data source
► Assumptions of accounting practices
Objectives of reporting
► Commercial organizations and/or non-profit organizations
► Listed groups and/or private groups
► Operational management and/or strategic management
► Internal reporting and/or external reporting
Natures of data source
► Past, present and/planned changes
► Transactions, vouchers, trial balance and/or pivot table like reports
► On-balance-sheet, off-balance-sheet and/or post-balance-sheet
► Numerical and/or non-numerical
► SQL and/or NoSQL (e.g. spreadsheet is an example of NoSQL)
Assumptions of accounting practices
► Tax accounting, financial accounting and/or management accounting
► Accrued accounting, cash accounting and/or fund accounting
► IFRS, PRC GAAP, HK GAAP, Japan GAAP, US GAAP etc
The above item list demonstrates clearly that Group Consolidation & Budgeting should have a reliable recording model. Obviously if every data source can be recorded with the application of the double-entry accounting model, then it will be effective in supporting the preparation of relevant reports to achieve the differing reporting objectives which themselves are based on different assumptions.
AVESTA Related Articles
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