Datasheet

The Consolidated Financial Statement is a financial reporting document of a consuntive nature, aimed at accurately representing the financial position, assets, and the economic results of the activities carried out overall by the Entity through its organizational structures, its instrumental bodies, and its controlled and affiliated companies, in accordance with the accounting standard 4/4 of Legislative Decree 118/2011.

It is prepared by the parent entity, which must request and collect the documentation, process it, and produce the final consolidated financial statement of local authorities:

  • Identifies the Entities and Companies included in the “Public Administration Group” (GAP) and in the “Consolidation Perimeter”;
  • Collects documentation by communicating consolidation guidelines to the bodies included in the perimeter;
  • Consolidates accounts by preparing pre-consolidation entries and eliminating intercompany transactions;
  • Prepares the consolidated income statement and balance sheet;
  • Drafts the management report including the explanatory notes.

The solutions proposed to simplify the preparation of the Consolidated Financial Statement leverage the experience gained by Gies in 30 years of direct collaboration with Public Entities.

Service Preparation of the Consolidated Financial Statement

We provide a “three-hundred-and-sixty-degree” service for the preparation of the Consolidated Financial Statement in accordance with Annex 4.4 of Legislative Decree 118/2011.

Our service is mainly structured in the following phases:

  1. We supervise and prepare the draft resolution of the Public Administration Group and the Consolidation Perimeter; we collect and analyze the financial and corporate information regarding the entities in which the Authority holds a shareholding; we calculate the materiality threshold; we define the GAP and the Perimeter; we draft the resolution scheme for approval by the Municipal Council.
  2. We supervise the request for information and the related attachments to the companies within the Consolidation Perimeter; we assist the Authority in preparing the documentation to be requested from the companies and instrumental entities belonging to the perimeter, sharing the directives to be issued, in order to receive all the necessary information required for the consolidated processing.
  3. We upload into the system the accounting and additional data of the companies to be consolidated, with possible reclassification of the financial statements from the civil law model to Legislative Decree 118.

  4. We draft the consolidation adjustments, necessary to “deflate” the aggregated financial statements from intercompany transactions, including:

    1. pre-consolidation entries, essential to ensure the uniformity of financial statements,
    2. intercompany elimination entries (elimination of reciprocal receivables/payables and costs/revenues), both vertical, between parent company and entity, and horizontal, between entities,
    3. cancellation entries, distinguishable in three stages: elimination of the carrying amount of equity investments in the parent company’s financial statements, elimination of the shareholders’ equity of the subsidiaries, and allocation of positive or negative cancellation differences.

  5. We prepare the consolidated financial statements and related documents:

    1. We draft the consolidated Income Statement and Balance Sheet schemes;
    2. We prepare the “Sum Balance Sheet”, which analytically reconstructs the consolidated financial statement, highlighting the aggregation of individual financial statements and the adjustments made;
    3. A working paper reporting all the consolidation adjustments carried out (so-called pre-consolidation, elimination, and cancellation entries);
    4. We draft the Management Report, which includes the analysis of the financial year result and the in-depth study of the group’s assets and financial aspects;
    5. We draft the Explanatory Notes, containing, in addition to specific information on receivable-payable reconciliation, management of cancellation differences, identification of the minority interest share, all the points required by the applied accounting principle 4/4.
  6. We prepare the .XBRL file for the transmission of data to the BDAP and provide support for its submission.

Software Babylon Web bilancio consolidato

Logo BabylonWeb bilancio consolidato

The tool BabylonWeb Bilancio Consolidato is a module of the BabylonWeb suite, integrated to inherit the parent company’s financial statements and the consolidation entries developed in the economic accounting module, in order to prepare the elimination operations with the entities to be consolidated. The BabylonWeb Bilancio Consolidato module is delivered in SaaS (as a service via Internet connection) or installed locally (on the Authority’s PCs or servers).

Thanks to a simple and intuitive interface, it facilitates activities through guided procedures. The data consistency control system (reconciliations, etc.) eliminates any margin of error. It represents a valid aid and support to the activities of the parent Public Administration for the preparation of the Consolidated Financial Statements.

By subscribing to the service, we provide the Authority with:

  • training and support, assisting step by step in the preparation of the Consolidated Financial Statements;
  • assistance and maintenance of the platform for the entire duration of the service and until the complete fulfillment of legal obligations regarding Consolidated Financial Statements.

Among the functionalities:

  • Identification of the Entities and Companies that are part of the “Public Administration Group” (GAP);
  • Identification of the relevant companies that constitute the “Consolidation Perimeter”;
  • Historical archive of the financial statements of the entities to be consolidated;
  • Definition for each entity of consolidation methods, legal nature, budget mission, whether in-house or service provider, type of control and placement, including any minority interest share;
  • Import of financial statements with reconciliation wizard for rounded amounts and possibility of recalculating the financial statements and entries;
  • Guided development of elimination operations: pre-consolidation, subsidiary on parent, subsidiary on subsidiary, free entries and automatic entries for the cancellation of equity investments, shareholders’ equity, management of cancellation differences and closing of results;
  • Printing of the consolidated financial statements, the “sum balance sheet” and preparation of the explanatory notes and the consolidated management report;
  • Export of the consolidated financial statements to .XBRL file for uploading to the BDAP portal.