FESA CONSOL

FlexSystem

Time Pressure to Maintain Multiple Scenarios of Group Consolidation

Issues

Time is of the essence and a listed group has to prepare its consolidated financial statements with multiple scenarios with the two main classes of scenario being as follows:

 Statutory consolidation

 Management consolidation

To comply with the requirements of statutory consolidation the following reasons will trigger the need for different multiple scenarios of the financial consolidation:

 To comply with regulatory requirements for different regulatory bodies

 To comply with accounting policies of its immediate holding companies and ultimate companies

 To comply with the management requirements for preparation of consolidated financial statements having different scenarios of business planning

To satisfy the management requirements of consolidation the following reasons will trigger the need of multiple scenarios for financial consolidation:

 To prepare different types of consolidated financial statements (i.e. Budget, forecast, preliminary, flash and actual etc.)

 To prepare consolidated financial statements with different currencies, entity combinations and recognition assumptions

  

Expectations

It is highly expected that the new system can manage the generation of multiple scenarios effectively and with a high degree of automation.

  

Solutions

FESA Consol is supported by 1) processing rules specification, 2) the scenario group and the scenario group adjustment and these items are all important functions available during the configuration process. In addition, the implementation of these scenarios allows users to select the following options:

 Output to multiple adjustment ledgers

 Output to multiple ledger sets

 Output to multiple scenarios inside a ledger

  

Benefits

The work of professional accountants can be improved fundamentally as they can support management for differing scenarios and most importantly reduces the lead time of preparation and the quality of the consolidated financial statements.