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CP-Cons

is a consolidation tool for preparing and analysing the financial statements of groups. It guides the user systematically through the whole consolidation process. Complicated and error-prone manual consolidation work in spreadsheet applications belong to the past!

 

Consolidated accounts – step by step

CP-Cons takes the user by the hand through each of the various steps in the consolidation process. Once the general settings for user access rights, the scope of the consolidated reporting entity and the definition and assignment of the charts of accounts are in place, specific parameters such as those for unifying the individual financial statements and for data transfer are defined. In the consolidation process itself, also managed by a workflow sequence, the individual financial statements are aggregated, all inter-company investments, liabilities, profits, losses, expenses and income are eliminated and consolidation adjustments are made in order to produce the consolidated financial statement.

 

Customised group structures

Flexibility right from the start!
In order to depict the ownership structures and the consolidated reporting entity, the basic settings are made first in straightforward input dialogues.

Assisted structure definition
CP-Cons has a convenient "Structure Editor" providing you with step-by-step support. The "Structure Editor" also handles the different charts of accounts of the various group companies and automatically maps them all to the chart designed for the group. Changes in the assignment can be made afterwards, if necessary.

The consolidated reporting entity Complete flexibility is given with respect to the definition of the consolidated reporting entity. Any arrangement of companies, subgroups, shareholdings and segments can be depicted. Individual financial statements (trial balances) are read in with the original chart of accounts first, and CP-Cons then makes sure that the assignment to the group chart of accounts is complete.

Consolidation therefore takes place on group account level and not by item, so your figures remain transparent and easy to understand!

 

Unifying the individual company accounts

Adjusting the financial statements to group accounting policy
It is frequently necessary for a number of transfer postings to be made before the individual company accounts can be combined to produce a consolidated financial statement.

In CP-Cons, these adjusting entries can be made directly in the original company accounts. An audit trail is provided in the form of a list of postings.

Currency translation The process of unifying the individual company statements also involves currency translation. CP-Cons offers the following currency translation methods: closing rate method, modified closing rate method and temporal method.

 

The consolidation procedure

Combining the individual financial statements
Before consolidation can take place, it is necessary for the balance sheets and profit and loss accounts of the group companies to be combined. The unified financial statements are aggregated according to the specified accounting treatment (full consolidation, proportionate consolidation or equity method) in order to produce the combined financial statement. A clear breakdown of the total balance is provided in a column report. This forms the basis on which each consolidation step can be carried out separately:

÷ Elimination of inter-company investments
÷ Elimination of inter-company liabilities
÷ Elimination of inter-company profits and losses
÷ Elimination of inter-company expenses and income
÷ Manual adjustment postings

 

Deferred taxes

Many groups are required to account for deferred taxes on an accrual basis in their consolidated financial statements. Deferred taxes arise where transactions affecting profit are differently recognised, measured or disclosed in the financial statement for commercial purposes and in the financial statement for tax purposes so that the taxable profit does not correspond to the net income as determined under commercial accounting principles. In CP-Cons, group tax rates can be entered for the calculation of deferred taxes.

 

Consolidated analyses

As well as preparing a consolidated financial statement to comply with statutory requirements, CP-Cons provides the user with the option of presenting the group data in the form of consolidated analyses. Analyses give details relating to the development of assets and liabilities. To portray such changes, an analysis will contain many more columns than a conventional consolidated financial statement.

In CP-Cons, a Statement of Changes in Fixed Assets, a Statement of Changes in Equity, an Analysis of Receivables, an Analysis of Provisions and an Analysis of Liabilities can be displayed.

 

Segment reporting

The segment reporting function enables the user to produce a full segment report which is obligatory for listed companies and for companies which prepare IFRS-compliant consolidated financial statements.

For medium-sized enterprises as well as for diversified groups, segment reports are an essential component in financial reporting. These can be prepared and analysed in CP-Cons. In a segment report, the enterprise classifies the information relating to assets, income and business prospects according to activity, industry sector or from a geographical point of view. This puts the user in a better position to assess the value, financial position and financial performance of the respective business area.

The steps towards the consolidated segment report are no different from those for preparing the statutory consolidated financial statement. The segment report is processed at the same time as the statutory consolidated financial statement is compiled. This goes to ensure that each posting is simultaneously executed and recorded for the segments. CP-Cons offers both a primary and a secondary reporting format.

 

Open to all data – automatically up to date

Data import
CP-Cons has interfaces for importing all the usual trial balance types from any file format, such as Excel and CSV. Users of the planning, information and reporting system Corporate Planner benefit from a particularly convenient means of data import due to the direct integration between the two products.

Automatic maintenance
The maintenance of data and structures is yet another automated process. When a new account appears in the trial balance of the pre-system it will be identified and added in CP-Cons automatically.

 

Planning and simulation functions

The planning and analysis strengths of the CP software are to be found once again in CP-Cons. A management consolidation function with a wide range of evaluation options is available alongside statutory consolidation in order to provide assistance in the management of investments.

 

Group reporting made easy with standard report templates

The purpose of successfully completing the consolidation procedure is to prepare a consolidated financial statement for audit. CP-Cons offers a comprehensive standard reporting system which conforms to audit standards.

 

User management

CP-Cons is multi-client capable and equipped with a differentiated user management facility with which a number of distinct roles can be set up. Roles are assigned competences for the consolidation steps through the access rights they receive. The system logs all input and steps completed, attributing them to the respective user by means of ID.