Consolidation

In PowerAccounting, consolidation aims at helping you reduce complexity, save time by accelerating the financial close, increase transparency, improve analysis and gain confidence for the consolidation of your financial statements. That's how we try to release your pressure on financial reporting and enable you to focus on business growth.
Major tasks for consolidation include:

• Company chart set up: This defines the company account structures for multiple entities.

• Account mapping: Account mapping between the companies for later fund transfer as desirable.

• Journal Generation. Roll up to parent company accounts include currency translation.

• Journal Adjustments. Minority interest calculation, eliminations, impairment.

Journal Generation

• Account mapping - Parent and subsidiary account charts account mapping to facilitate automatic posting to the corresponding parent accounts during the consolidation processing.

• Journal Entry Generation - Journal entry will be generated to the parent company for the specified posting period. Here will also include currency translations and elimination if exist. If there is any currency exchange difference, it will normally be placed in a designated exchange difference account being set up specially for such purpose.

Journal Adjustments

This will normally include certain work in minority interest, elimination and impairment.

• Minority Interest: Calculate and record the values of the actual share ownership of the subsidiary(ies).

• Eliminations: Eliminate intercompany transactions, the subsidiary's stockholder equity and the parent's investment account.

• Impairment: Recognize impairment of goodwill and intangible assets.