Two or more CaseWare files representing the entities; making up the economic group; and

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1 Version: 27 January 2017 It is possible to produce a two and four column consolidated report using the Financials template. Prior to creating your consolidation file, ensure you have completed: Two or more CaseWare files representing the entities; making up the economic group; and Every group / entity CaseWare file must have the trial balance imported and mapped. The individual entity's working papers do not need to be finished prior to setting up a Consolidation. The consolidation file only collects data from the Working Trial Balance. Phone: support@caseware.com.au Web: 1

2 Creating a new Consolidation File 1. Create a new file based on the FinancialsIFRS template. Make sure the reporting dates are consisted between the consolidation and the individual entities files. 2. From the ribbon, select Engagement tab Consolidate. 3. The top entity is the consolidated entity. To modify the top level entity, select the top entity and select Properties. Click on New to add additional entities to the consolidation tree. 4. In the Entity Identification, enter the Name and Abbreviation for each of the entity, including the top consolidated entity. (a) (b) External Source - None: Use this option to import the trial balance into the same engagemen file. External Source - Existing File: Use this option to import the trial balance from other engagement file. 5. Click OK to close the Entity Properties dialog. 6. Once the consolidation tree is completed, click OK on the consolidation dialog. 2

3 FinancialsIFRS Settings 1. From the Financials ribbon, select the Engagement tab. 2. Set the Presentation to Parent and Consolidated for 4 column disclosure. Select the Parent and Consolidated entity from the drop down selection. 3. Set the Presentation to Consolidated for 2 column disclosure. Select the Consolidated entity from the drop down selection. 3

4 Elimination Entries Elimination entries are used to eliminate the effect of inter-company transactions. They are entered using the Adjusting Journal Entries screen and selecting Eliminating as the type of entry. When entering elimination entries in a consolidation file, you will be given a choice of entity as well as an account number. Entries eliminating amounts from the parent company will not affect the parent entity balances for the purposes of the four-column consolidation reporting, i.e. the parent entity columns will remain as they are in the parent company's individual accounts. Elimination entries can be entered as recurring entries. By clicking the Advanced button, entries can be 'including amounts' (e.g. for recurring elimination of share capital etc) or 'not including amounts' (e.g. for elimination of inter-company balances or inter-company trading). Example: To eliminate the investment in subsidiary Entity Account Dr Cr Parent Shares in subsidiary (xx) Subsidiary Share capital xx Subsidiary Retained earnings xx Subsidiary Reserves xx Parent Goodwill (or Reserves) on consolidation (xx) Example: To eliminate the effect of sales to Subsidiary Entity Account Dr Cr Parent Sales xx Subsidiary Purchases (xx) 4

5 Updating the external files If a change occurs in an individual file (for example, a journal entry is entered or an account is remapped), CaseWare will recognise that a change has been made when the consolidated file is next opened. To update the consolidated file, from the ribbon, select Engagement tab Consolidate. (a) (b) Click Apply to save the changes of the modified entity only; Click Consolidate All to reapply all entities - even those which have not been modified. Enable account synchronisation option When consolidating two or more engagement files, the data from one of the external entity file is merged with the consolidated file. The Conflict Resolution dialog box only opens when the same account was modified in the external entity and the consolidated file if the Enable account synchronization check box is selected. 5

6 The Conflict Resolution dialog lists the changes that will be automatically be made by Working Papers. You cannot select a different resolution. To see an extended description of the automatic change, select a change and additional information is displayed in the box below the list. Click on the View Report to see a full report of the changes. 6

7 Assign Entities If you have a trial balance in CaseWare that you want to split into multiple entities, it is possible to assign accounts to entities. You need to first set up the consolidation tree. Then, the accounts can be allocated to the appropriate entity from the ribbon, in the Account tab Assign Entities. The Assign Entities screen works in a similar way to the mapping screen where you can highlight the accounts on the left-hand side, then the Division/Entity on the right-hand side and press the Assign button at the bottom of the screen. This process can be repeated until all accounts have been appropriately allocated. 7

8 Consolidated View for Automatic Documents In a consolidated view, automatic document can be change to display the entities across the page, rather than down the page. To do this: 1. Select the Automatic Document in the document manager. 2. Right click and choose properties. 3. Tick Concolidated View. 4. Select the Balance Type to Consolidated 5. click OK. Result: 8

9 Year 2 Process From the second year onwards, when linking to the new individual files that have been rolled forward, it is important to not include prior year figures again. This is because the prior year figures from the individual files will overwrite the adjusted prior year figures in the consolidation file and, therefore, eliminating entries will be lost. This is the procedure to follow from year two: Roll forward all individual CaseWare files (parent and subsidiaries) that make up the consolidation. Import current year data into the individual files. Roll forward the consolidated file. To bring the current year data into the consolidation file, from the ribbon, select Engagement tab Consolidate For each entity, click Properties and make the following changes: Click Browse and link to the new path of the individual, rolled-forward CaseWare file. Ensure that 'include prior balances' is unticked. Click OK. After all the entity properties has been updated, click OK on the consolidation dialog to start the consolidation process. 9