Consolidation
techniques have changed little over the past years. Which is why it's
surprising to hear that a new book on the subject has just been published.
We’re talking about this one because we're proud to say that it was written by
Allen White, one of the founders of our group, Sigma Conso.
Direct
Consolidation (Consolidate your expertise) has just been published. The book is
in English. It is 500 pages long and is intended for consolidation
professionals, students, group financial managers and anyone looking for an
introduction to consolidation or wishing to increase their knowledge about the
topic.
Allen White had
already published two books on the topic in French in the early 1990s (La
Consolidation Directe, principes de base and La Consolidation Directe, études
de cas). Several non-French-speaking clients and some of our partners in other
countries had been asking him to publish a translation of the books in English
for several years now.
While translating
the books in 2015, Allen realised that, although consolidation techniques
hadn’t changed much over the past 20 to 30 thirty years, his own approach had
changed radically during that time. He felt that that the existing books could
be significantly improved. His experience in the field and as a teacher enabled
him to shed new light on the subject. Which is why a new book is being
published this month.
Why should you read
the book? Here are 10 good reasons!
- It
contains the essence of 30 years of experience in 500 pages
Allen has dedicated
his entire career to consolidation. Over the past 30 years he has carried out
many consulting missions with groups, contributed to the development of several
group consolidation and reporting software packages and trained over 3,000
consolidators.
He wanted his book
to reflect the pedagogical approach he has refined over the years. He also
wanted to include the cases he had encountered and the comments and questions
of many clients and participants in his consolidation classes.
He therefore went
into greater detail about certain aspects, added case studies of less common
situations which every consolidator will likely come up against at least once
in their career and he discusses certain practical aspects such as the
organisation of the consolidation process.
He also included
the most recent IFRS developments which impact consolidation technique.
- It’s written in simple,
understandable English
Given that the book
will be sold in many countries, both English-speaking and non-English-speaking,
the author has been careful to write in simple English and avoid useless
jargon.
- Readers learn a method
step-by-step to carry out a consolidation in 7 stages
Like any good book
on consolidation, this one includes the basics. You are guided through the
seven steps to perform a consolidation. They include the identification of the
companies included in the scope, the collection of information about
subsidiaries, currency conversion, etc. through to the creation of consolidated
reports by recipient: legal filing of the accounts and reporting for
shareholders and group management.
- It’s a complete book
The book describes
the three consolidation methods as well as the direct and step-by-step
consolidation techniques. It describes the major events occurring in the life
of a group: changes in assets and liabilities, changes in shareholders' equity,
preparation of the cash flow statement...and it describes currency exchange,
intercompany reconciliation, consolidation adjustments and the elimination
process.
- Readers learn how to
organise a consolidation
The book also
includes:
- Advice on selecting a computer tool: when is a
spreadsheet sufficient and at what point do you need to use a group
consolidation and reporting software application? On what criteria should
you base your group software selection?
- A guide for the first consolidation of a group:
initial choices, the scope of consolidation, relations with auditors, the
tasks of the consolidation department, how to organise the consolidation
department, the impact of the first consolidation on subsidiaries, etc.
- Implementation of the fast close process with many
practical recommendations.
- It provides a description of
consolidation situations which “only happen to others”
With over 30 years
of consolidation experience and practice with a wide range of groups, Allen
knows that events in the life of a group do not necessarily unfold as they do
in books.
He shares many
practical cases and their solutions in his book:
- Classic cases: group restructuring, unusual group
structures, mergers, equity transactions, etc.
- He also includes cases which we believe
"only happen to others": acquisition of a company with negative
shareholders' equity, acquisition of a subgroup, the sale and acquisition
of a company during the same fiscal period, a change in parent company,
etc.
- All situation analyses are
fully explained
Regardless of its
level of complexity, each situation is illustrated with a practical case over
two years together with the necessary explanations (reserves, minority
shareholders, etc.) to meet the expectations of the most demanding
professionals.
- It provides an illustrated
methodology
The book provides a
complete, practical case study of a consolidation over two years for a group
dealing with realistic events occurring during each year. The simultaneous
situations, which often result in difficulties, illustrate the effectiveness of
the methodology applied at different points of the consolidation process
through justification of the changes in the consolidated accounts and
preparation of the funds statement.
- It’s a useful tool for
self-assessment
Three
self-assessment quizzes with 10 questions corresponding to three knowledge
levels are provided at the end of the book with answers and explanations.
- It’s a book to read today
and to use as a reference tomorrow
The book is both a
necessary tool for anyone wishing to learn the consolidation business and a
reference tool to be used when complex situations arise during group
consolidation.
Lastly, account
consolidation is often an international exercise and the book provides a short
glossary with translations of 50 technical terms in eight languages.
In conclusion,
we’re convinced that this book adds an innovative approach to the literature
about account consolidation. The book is based on more than 30 years of
experience and teaching. It puts significant emphasis on the practical aspects
of consolidation, including the organisation of the consolidation department,
special cases, etc.
We’re sure you’ll
enjoy the book!
Order before
June 30th and receive an exceptional 10% discount! For more information about
the book and to order, please click here.
Si desea optimizar sus procesos de consolidación e informes, contacte con nosotros y le ayudaremos a alcanzar sus metas.
