Enter adjustments at the right consolidation level. In Fincorex® you can trace their impact on the balance sheet and income statement, from company data to the group financial statements.
A list of adjustments assigned to the period.
Recording an adjustment in a subgroup or at group level.
Changes visible on the relevant balance sheet items.
Impact on costs, revenue and results.
Aligning data with group reporting policies.
Adjusting for unrealized intercompany margin.
Comparing items before and after the adjustment.
Visibility into adjustments at each consolidation stage.
Financial statements including adjustments and eliminations.
Goods bought from a group company remain in inventory at the end of the period. In this example, the adjustment reduces inventory and operating profit by PLN 300k.
Report excerpt · illustrative data
Operating profit before the two adjustments is PLN 12m. After recording the margin in inventory at subgroup level and the provisions adjustment at group level, it is PLN 11.58m.
The report shows the amount of each adjustment and the level at which it was recorded.
Assign the adjustment to a period, item and consolidation level.
Record the adjustment on the relevant reporting items.
Compare values before and after the adjustment.
See which adjustments make up the change in a given item. In this example, the provisions adjustment increases provisions on the balance sheet and operating costs by the same amount.
Where the adjustment is recorded.
Subgroup or group.
The amount of change in the group currency.
The basis for the group financial statements.
Concept view · illustrative data
At subgroup level or for the whole group – depending on which entities the adjustment concerns and at which consolidation stage it should be applied.
Intercompany eliminations remove reconciled transactions and balances between companies. Adjustments change the value of items, e.g. by removing unrealized margin in inventory or aligning measurement policies.
In the adjustment register and in the before-and-after view – for each adjustment you can see the level, the balance sheet and P&L items, and the change in results.
Yes. For example, an adjustment for margin in inventory reduces inventory on the balance sheet and at the same time increases cost of sales.
As a proof of concept, we’ll rebuild your reporting or planning model in Fincorex® and show it to you at our next meeting.
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