Use Case
Mapping of Parallel Accounting Standards and Automation of Group Consolidation
The Company
Grohe AG is a leading manufacturer of faucets and sanitary products.
The initial situation
After the takeover by an investor, the previously manual processes in Group Accounting had to be automated and integrated more closely. Core challenges consisted in the conversion from HGB consolidation to IFRS and later to J-GAAP. In addition, the consolidation of different group levels was carried out with push-down of the ppa entries for each level to the legal entity. This involved many different subgroups with decentralized data upload for different fiscal year logics.
The approach
- Definition and set-up of group-wide harmonized structures according to required IFRS financial statements.
- Mapping of local CoA to IFRS accounts and automation of upload routine including different fiscal year logics (local data, manual journals, copy forward rules etc.)
- Implementation of the investment register for HGB and IFRS within the consolidation system and integration of automated ppa push-down entries into the legal entity (each group level had "new" ppa entries)
- Design and implementation of a complete Notes package within the consolidation system and setup of validation reports, checking rules and standardized reporting process
- Implementation of different reporting views for IFRS and J-GAAP including new mapping rules and separation of reporting lines
- Establishment of a reporting platform for legal closing, management reporting and ETL processes to the new shareholder in Japan
Your Benefits
Complete automation of consolidation for different hierarchy levels and subgroups. In addition, this created transparency for auditors and shareholders as to at which level and according to which GAAP the corresponding entries arise and which effects thereby arise from which segment.
