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Hello sir,
what is the difference between GROUP FS and Consolidation package ?
Group FS means Consolidated FS means FS – SoPL, SoFP, SoCiE, CFS and all notes – i.e. the complete set of information that carries the group auditor’s report.
A consolidation package provides information for the consolidation process – it sets out a standard proforma for example for all account balances and classes of transactions and information about accounting policies or other matters that require adjustment on consolidation. For example, each subsidiary will report inter-company balances/inventory, etc with other group companies. The parent should of course know its balances with subsidiaries, but it would know know, without asking, how much inventory each subsidiary holds or what trading goes on between subsidiaries. It’s obviously not a big deal for a parent with one subsidiary – but image a multinational with dozens (or even hundreds) of subsidiaries.
That makes sense.. So ideally consolidation package would be more detailed info about each subsidiary for the group auditor and for the parent company mgt . isnt it
Yes – it is provides no additional information for the subsidiaries’ management (everything they need to know they know already). Although the subsidiaries’ finance departments will be responsible for putting the information together (because the parent’s management instructs the subsidiaries’ management to provide it), it will often be the component auditor (on the instruction of the group auditor) who reviews it (e.g. for completeness) before it is sent to “head office”.
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