The future of consolidation: Statutory consolidation and reporting - unified consolidation

The future of consolidation (4/7): Statutory consolidation and reporting – unified consolidation


Statutory consolidation and reporting: unified consolidation

By Allen White, Sigma Conso co-founder & Administrator

Since the 1990s, most groups have tried more or less successfully to unify their statutory accounting and their reporting within the same software, often with barely concealed uneasiness, in order to more easily reconcile projections and reality.

Although consolidation software now handles this dual difficulty fairly well… the unease subsists.

We believe that the issue is not at the software level, but with the groups which don’t necessarily work with the objectivity and rigour required because resources have to be allocated to reconcile numbers from different sources. Is this the case?

A few observations will provide a better illustration than a long explanation of the true difficulties that groups we recently met with, consciously or unconsciously, create for themselves.

So, can statutory consolidation and reporting be reconciled? As surprising as it may seem, there are many examples of this type. The challenge for unified consolidation over the coming years is no longer to improve consolidation software. What sophisticated solution could software provide to such irrational situations? Once again, whether we are talking about statutory consolidation or reporting, or both in a unified vision, it isn’t up to the software to unify. The information system must provide unified structure, content and processing.

This is a matter for group organisation, a major change in habits and cultural changes. It is no longer a purely technical problem which makes it much more difficult. However, success will result from this change in mentality.

Articles in the “Future of Consolidation” series:

  1. The structure of the data to consolidate and processing in consolidation
  2. The reconciliation of intercompany balances: is there hope?
  3. IFRS and local GAAP
  4. Statutory consolidation and reporting: unified consolidation
  5. Group structure
  6. Financial communication
  7. Impact of future technological changes on consolidation

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Sigma Conso Consolidation & Reporting is a consolidation software package which unifies statutory consolidation and management reporting to provide a single version of the truth. The software is multilingual, multi-standard and multi-currency to meet the needs of international groups. Web native, quick to implement and fully configurable by customers, it provides the lowest possible cost of ownership.

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