Reconciliation

How a parent accounts for investments in subsidiaries, associates and joint ventures in separate financial statements using cost, IFRS 9 or the equity method.

As a group’s CFO or head accountant, who has to deal with consolidation, you know that the walls of the consolidation house are mainly built from intra-group reconciliations. Differences in balances lead to a wonky roof! And what a nightmare it is to solve those errors when a reporting date is twinkling in your calendar…