Innovative Processes of Drawing up the Consolidated Reporting

Abstract

The consolidated reporting is of great importance, both for the management of the company, and for the investors. To analyse financial and economic situation and the results of the performance of a group of organizations in general is more important, than to estimate the indicators of separate firms. The management of the groups which made the decision about the preparation of the consolidated reporting under IFRS (International Financial Reporting Standards) can face some methodological problems. These problems can be caused, for example, by insufficient qualification of some financial services, the judgments concerning the existence of control over the companies of that group, and also regarding the way of consolidation, technical difficulties when calculating goodwill and not controlling share. In order to solve the corresponding tasks at the initial stage, it is expedient to involve the specialists of auditor firms as at the staff of the company may not have the sufficient experience in the area of consolidation of financial statements. In the future, after all the necessary experience has been acquired and after all the staff of the company have got sufficient training on IFRS, they will be able to carry out the preparation of the consolidated reporting by their own.