Consolidated Accounts Services

Non-controlling interests are the equity in a subsidiary that is not attributable to the parent, directly or indirectly. For an ordinary shareholding, this represents the other shareholders' interest when the parent does not own all of the subsidiary. It is shown separately from the parent's owners' equity in the consolidated statement of financial position. Share the ownership percentages and any changes during the year so the associate can identify the relevant interests and reporting requirements.

Tell the associate which records and reports each system can provide, together with the reporting dates and currencies. The scope can then identify the information needed for the group figures and any gaps to address first. Software migration, system implementation or integration is not promised as part of consolidation.

Relevant balances and transactions within the group are eliminated in the consolidated group view under the applicable reporting framework. They must first be identified and reconciled before the agreed consolidation adjustments are prepared. Provide schedules from both companies and flag any differences. If a balance does not agree, supporting records are needed to understand the mismatch; unresolved items remain clear rather than being treated as automatically corrected or eliminated.

There is not one exchange rate that can automatically be applied to every figure. The approach depends on each entity’s functional currency, the group’s presentation currency and the applicable reporting framework. IAS 21 distinguishes foreign-currency transactions from translating foreign operations and financial statements. Give the associate the currencies, periods and available exchange-rate information so the required treatment can be established for your group.

The starting point is whether a company controls other entities, not simply whether several businesses share an owner. MIA’s guidance explains that a parent under MFRS must present consolidated financial statements, with control assessed under MFRS 10; MPERS has its own control assessment in Section 9. Your advisers should confirm the applicable framework and any exemption for your circumstances. Share the ownership and control structure when enquiring.

Consolidated financial statements present a parent and its subsidiaries as a single economic entity under the applicable reporting framework. They involve consolidation adjustments for transactions and balances within the group, rather than simply adding each company’s figures.

Standalone statements describe an individual entity. Consolidated statements present the parent and subsidiaries as one group, with consolidation adjustments rather than simply adding the separate figures. Which statements your group needs depends on the applicable framework and circumstances; share the group structure when enquiring.

The scope depends on the number of entities, ownership structure, record quality, intercompany activity, currencies and reporting periods. Share a group structure and the available accounts so the associate can assess the work before quoting.

Timing depends on when each entity can provide usable accounts and supporting schedules, and how quickly intercompany differences and other questions are resolved. Share your reporting deadline early; the timetable is agreed after the group requirements are understood.

A group report does not replace the information needed to assess a particular subsidiary’s own position or results. Review that company’s own figures alongside the group report when making company-specific decisions. Tell the associate whether you need group reporting, individual-company financial statements or both so the outputs are clear.

Under MFRS, a subsidiary’s income and expenses enter the group statements from the date control is gained and remain included until control is lost. If a company joined or left your group during the year, provide the dates and supporting records instead of assuming its full year’s results belong in the consolidation. The associate needs these changes to confirm the reporting scope and applicable framework.

No. Consolidation brings the figures of group companies together into the agreed group figures. An audit is a separate engagement in which an auditor gives an opinion on financial statements. Audit is not part of this service. Any audit your group needs is carried out by an auditor it engages separately.

Begin with the group structure and each entity’s trial balance or accounts, reporting date, currency and accounting policies. Provide ownership details and schedules of transactions and balances between group companies. The applicable framework determines the consolidation adjustments. Differences need supporting evidence rather than automatic elimination, and the associate confirms the final records and scope for your group.

This can happen, for example, when a company has recently joined a group. The Companies Act 2016 has rules on aligning financial years within a group, and those rules have exceptions, so your directors and advisers should confirm what applies to your group. Mention any different year-ends when you enquire, as they affect the scope.

The directors of the holding company. Responsibility for the group's financial statements stays with them, and outside help with the group figures does not move it away from them. Your directors and advisers should confirm the specific requirements that apply to your group.