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    Lisa Poore
    Financial Statements for Legal Entities at the Child level...
    Topic posted June 3, 2019 by Lisa PooreBronze Medal: 1,250+ Points, tagged Balance Sheet, Consolidation, Income Statement, Intercompany 
    147 Views, 2 Comments
    Title:
    Financial Statements for Legal Entities at the Child level that include intercompany eliminations
    Summary:
    Is there a way to provide true Financial Statements for Legal Entities at the Child level that include intercompany eliminations
    Content:

    Our tax department is looking to get true legal entity financial statements for each of the corporation's legal entities,  that take into account inter-company eliminations.  They are hoping to use FCCS to get this information but we are unsure how this can be accomplished because the inter-company eliminations take place at a higher level, not at the child LE as they would need.  Does anyone have a similar situation that they have been able to solve for?  Or any suggestions?

    Version:
    19.05.57

    Comment

     

    • Keith Glide

      One option is to create an alternative "flat" entity structure with all level 0 Legal Company entities as immediate children of a single parent entity. All eliminations will then be processed in the Elimination Consolidation dimension member of each level 0 child entity and the net results will be available at the Contribution member of each level 0 child member. Note that the eliminations (and resulting Contribution) information will be in the currency of the parent entity. You might however need to be careful as to how many entities you add as immediate children of a single parent (there are performance implications if a single parent has too many immediate children).

    • Julien Coudrette

      Hi Lisa

      Yes, it is typically something that is specific to tax and the answer may depend on your specific situation, and which IC eliminations are expected. In addition to what Keith suggested, one (simplistic) solution could be to use the Intercompany dimension to select data with or without IC eliminations.

      Sometimes the concept of legal entity that tax utilizes does not align neatly with entities used by accounting. Sometimes, transfer pricing or other adjustments are also required. In these situations, it may be wiser to use a separate TRCS application to support specific tax requirements.

      Hope that helps!

      Julien