Consolidation and translation

Step by step

1. Readiness Controller

   The preparing Controller checks that included entities meet the required close status for their mapped periods. Intercompany balances and timing differences are agreed or have an approved resolution. Closing and average rates exist for required pairs; historical balances have supported rates. Missing-rate and unresolved elimination exceptions remain visible.

   • Updates Accounting periods, Intercompany transactions, Intercompany balances, Exchange rates, Historical rates

2. Create the run Controller

   Controller creates the run for the group reporting period; its linked group journals must use an eligible posting period. The run retains included entities, source periods, close status, ownership and consolidation method. It identifies the rate versions and accounting policies to apply; their suitability is verified for the group’s reporting requirements.

   • Updates Consolidation runs, Consolidation entities, Entities, Accounting periods

3. Translate Controller

   Controller reviews translation of each entity’s functional balances into reporting currency. Account rules select reviewed closing and historical rates; income uses actual dated rates or an assessed suitable average. Translated balances retain source amounts and rates. Differences needed to balance the translated result flow to the group’s translation adjustment account with supporting workings.

   • Updates Consolidation runs, Translated balances, Journal entries

4. Eliminate Controller

   Controller prepares eliminations for matched intercompany activity, investment and equity, and other supported group adjustments. Non-controlling interest follows the reviewed ownership policy. Each entry retains its source and group period. A rate, timing or policy residue requires a documented adjustment rather than an assumed automatic match.

   • Updates Elimination entries, Journal entries

5. Review Controller

   A different authorised Controller reviews the Consolidation Worksheet, rate evidence, entity-period mapping, eliminations and adjustment explanations. Errors return to the responsible entity or preparing Controller. Corrected source data supersedes the affected run and requires recalculation; prior versions remain available.

   • Updates Consolidation runs, Consolidation entities, Elimination entries, Approval decisions
   ApprovalA person approves before the work moves on.

6. Lock Controller

   The independent Controller signs off only after required entity hard closes and adjustment approvals are complete. Lock freezes the run and its used-rate versions. The group statements use this approved result. Reopening or replacing it follows the logged correction path and cannot silently overwrite the signed version.

   • Updates Consolidation runs, Approval decisions, Exchange rates, Historical rates
   ApprovalA person approves before the work moves on.

Controller

Prepares translation and eliminations. a different authorised Controller reviews and locks the run.

Treasury Analyst

Supplies rates and resolves rate exceptions.

FP&A Analyst

Reviews group variance.

Auditor

Reads source periods, translated balances, eliminations and approval evidence.