Group adjustments and reporting

Prepare a group adjustment

A top-side adjustment records the affected account, offset account, signed amount, period and reason. Attach the supporting workpaper before submission. The signed amount produces equal and opposite effects on the two declared accounts; the consolidated build must include both sides, not add the same amount to every account.

The Group Controller reviews the current revision independently of preparation. Approval freezes the evidence and amount. A submitted edit invalidates the earlier decision. These entries belong to the consolidation layer and leave the subsidiary’s source books unchanged unless a separately authorised source-ledger correction is made.

Allocate non-controlling interests

The calculation uses the approved ownership method, effective interval and allocation basis. For the configured simple common-equity case, the non-controlling percentage is one hundred less the parent share, applied to the reviewed equity and income bases. Different share rights, acquisition adjustments or mid-period ownership changes require the appropriate reviewed workpaper.

Keep allocation amounts and their offset classifications separate from the translated source balances. An allocation reclassifies supported balances; it does not add the same subsidiary equity a second time. The group result records the chosen ownership version and explains the amount attributable to the parent and other owners.

Build from one complete calculation

The consolidated trial balance combines the chosen run’s translated balances, closing translation adjustment, posted elimination history with linked reversals, approved adjustment effects and supported allocation entries. It rejects a mixture of outputs from different input snapshots. Account-level drill-down shows where each component came from and preserves debit and credit signs.

A balanced total is an essential check but cannot prove that all entities, mappings or disclosures are correct. Complete the population, rate and exception checks as well. A missing subsidiary can leave a numerically balanced group result; the frozen required-entity set is what prevents that result from being treated as complete.

Supply the statement movement evidence

Income statement and balance sheet lines use reviewed group-account mappings. The cash flow statement also requires classified movement information and non-cash, acquisition, disposal and currency-effect reconciliations. Comparing two closing trial balances alone cannot explain every cash movement. Missing movement evidence keeps the statement in draft.

The equity roll-forward reconciles opening balances, profit, distributions, ownership movements and other comprehensive income to the closing balances. Supporting movement records retain source evidence, classification, amount and review. Narrative disclosures use the same reporting period and selected financial revision, so a pack cannot combine a new number with an older approved note.

Keep reporting decisions visible

A preparer creates the candidate statements and notes. The Consolidation Manager reviews the reconciled output; the Group Controller signs the approved revision before publication. Working reports can support the review without giving executive readers access to unpublished balances. A correction after publication creates a linked restatement and preserves the original pack, its signatures and the financial inputs that explain it.