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The Rise of Group Consolidation & Budgeting

  

Group

 

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.



 

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