Consolidation and Intercompany Reconciliation Template

Consolidation and Intercompany Reconciliation: [Group name] [Period]

A period-end consolidation file for a group of companies: the group perimeter and control assessment, the reporting package, foreign currency translation, intercompany matching, the dispute log and the elimination entries, with review evidence. The structure follows IFRS 10 "Consolidated Financial Statements" and IAS 21 "The Effects of Changes in Foreign Exchange Rates" (including the amendments "Lack of Exchangeability", August 2023, effective for annual periods beginning on or after 2025-01-01, and "Translation to a Hyperinflationary Presentation Currency", issued 2025-11-13, effective for annual periods beginning on or after 2027-01-01), with pointers to FASB ASC Topics 810 and 830 for US GAAP groups. Standards are cited by name and paragraph or topic number only. Replace every [bracketed] value and every row marked Example. This is a documentation format, not accounting, audit or tax advice: check the current official texts and a qualified professional.

Document control

Approvals

Revision history

Contents

1. Scope and close calendar
2. Group perimeter and control assessment
3. Reporting package
4. Foreign currency translation
5. Intercompany policy and matching process
6. Intercompany matching results
7. Intercompany dispute log
8. Elimination entries
9. Non-controlling interests and translation reserve
10. Review, controls and sign-off
11. US GAAP pointers
12. Glossary and references

1. Scope and close calendar

The closing date of every subsidiary should be the group's reporting date. IFRS 10 paragraphs B92 and B93 cover the exception where a subsidiary uses a different date: adjustments for significant transactions and a gap of no more than three months. Example: All Orsolan entities close on 2026-12-31.

2. Group perimeter and control assessment

IFRS 10 paragraph 7 sets the three elements of control, with application guidance in Appendix B (paragraphs B2 to B85). Associates and joint ventures follow IAS 28 and IFRS 11; structured entities need a separate assessment. Under US GAAP, ASC 810 has two models (variable interest entities and voting interest entities): assess both where relevant.

Changes in ownership: an increase or decrease without loss of control is an equity transaction (IFRS 10 paragraph 23); loss of control follows paragraph 25 and Appendix B (paragraphs B97 to B99). Record any such change here with the calculation.

3. Reporting package

IFRS 10 paragraph B87 requires uniform accounting policies, adjusting an entity's figures where its policies differ.

4. Foreign currency translation

IAS 21 paragraphs 9 to 14 set how functional currency is determined, paragraphs 39 to 41 the translation of a foreign operation into the presentation currency (assets and liabilities at the closing rate, income and expenses at transaction-date rates or an average that approximates them, differences in other comprehensive income), and paragraph 47 the treatment of goodwill and fair value adjustments. The amendments "Lack of Exchangeability" (paragraphs 8A and 19A onward, check the text) apply where a currency cannot be exchanged, and the 2025 amendments cover translation into a hyperinflationary presentation currency from 2027.

Example: The rates above are invented for illustration. Rates for dividends and other large transactions use the spot rate on the transaction date; for E04's dividend that rate was 4.30.

Translation of E02 (USD thousand to EUR thousand):

Translation of E04 (PLN thousand to EUR thousand):

The USD strengthened against the EUR during the year (fewer USD per EUR), so E02's translated net assets rose and the difference is a gain; the PLN weakened, so E04's difference is a loss.

5. Intercompany policy and matching process

6. Intercompany matching results

Unmatched or one-sided items: [list]. Example: None after IC-03 accrual.

7. Intercompany dispute log

Ageing: [number of disputes by age band, 0 to 30, 31 to 60, over 60 days]. Example: One dispute closed within 30 days.

8. Elimination entries

IFRS 10 paragraph B86 sets the consolidation procedures: combine like items, offset the parent's investment against its share of equity, and eliminate intragroup balances, transactions, income, expenses and unrealised profits in full. Deferred tax on temporary differences from eliminating unrealised profits follows IAS 12.

Not eliminated: E04 records a foreign exchange loss of PLN 500 thousand (EUR 118 thousand at the average rate) on the EUR loan from E01, because the loan moved from PLN 21,000 thousand (at 4.20) to PLN 21,500 thousand (at 4.30). IAS 21 paragraph 45 keeps such differences in consolidated profit or loss, because the group is exposed to the currency. The exception is a loan that forms part of the net investment in a foreign operation (IAS 21 paragraphs 15 and 32), whose differences go to other comprehensive income in the consolidated statements. Example: The loan is repayable in 2029 and settlement is planned, so it is not part of the net investment.

9. Non-controlling interests and translation reserve

NCI are presented within equity, separately from the parent owners' equity (IFRS 10 paragraph 22), and profit, other comprehensive income and dividends are attributed to them (paragraph B94). The measurement of NCI at acquisition (fair value or proportionate share of net assets) follows IFRS 3.

Example: NCI are measured at the proportionate share of net assets, so no goodwill is attributed to NCI.

On disposal of a foreign operation, the cumulative translation differences attributed to the parent are reclassified to profit or loss (IAS 21 paragraph 48 onward); keep the reserve by operation so that this amount is available.

10. Review, controls and sign-off

Open points at sign-off: [list with owner and date]. Example: DSP-02 data request outstanding; below materiality.

11. US GAAP pointers

Official text: FASB Accounting Standards Codification, free basic view or licensed professional access: https://asc.fasb.org

12. Glossary and references

References:

• IFRS 10 "Consolidated Financial Statements" (IASB, issued May 2011, effective 2013-01-01, as amended); paragraph numbers only.
• IAS 21 "The Effects of Changes in Foreign Exchange Rates", as amended by "Lack of Exchangeability" (August 2023, effective 2025-01-01) and "Translation to a Hyperinflationary Presentation Currency" (issued 2025-11-13, effective 2027-01-01); paragraph numbers only.
• IAS 12 "Income Taxes"; IAS 28 "Investments in Associates and Joint Ventures"; IFRS 3 "Business Combinations"; IFRS 11 "Joint Arrangements"; IAS 24 "Related Party Disclosures".
• FASB ASC Topics 810 (Consolidation), 830 (Foreign Currency Matters), 740 (Income Taxes) and 323 (Investments, Equity Method and Joint Ventures); topic numbers only.
• Official text of IFRS Accounting Standards: IFRS Foundation, free registration or licensed access: https://www.ifrs.org/issued-standards/list-of-standards/

Standard and licence note

Structure aligned with IFRS 10 and IAS 21 issued by the IASB, and with FASB ASC Topics 810 and 830, cited by paragraph or topic number only. The IFRS Foundation and the Financial Accounting Foundation hold copyright in these texts, so this template contains no wording or examples from them; the close calendar, matching rules, dispute log, entries and the Orsolan Instruments example are original and fictional, and the exchange rates are invented. Paragraph numbers are pointers to check against the current official text. Template licence: MIT.