Firstly, it is important at this point to define the concept of concern and to work out its meaning in this context. In this sense, concerns are companies with at least one subsidiary. Wikipedia defines it in this way:
A concern (German: Konzern) is a type of business group common in Europe, particularly in Germany. It results from the merger of several legally independent companies into a single economic entity under unified management. A concern consists of a controlling enterprise and one or more controlled enterprises. The controlled enterprises are economically and financially dependent on the parent company, but legally independent and create their own balance sheets and income statements which are then combined in the consolidated balance sheet and consolidated income statement. The term Concern is of German origin and also known in other countries. Basically, a one-to-one translation is not always possible. Although the word concern = "company, firm" is known in the English-speaking world, it is regarded as a linguistic loan from the German language and it is only used selectively. The term "corporate group" is widely used there as well.
Therefore it is clear that "concerns" include a wide part of the corporate landscape.In certain cases, concerns are subjected to the obligation to draw up consolidated accounts.
It generally applies that reporting must serve as an important control mechanism at concern level.
Relevant topics in this context are:
- Achieving a high degree of automation in the group consolidation including inter-company reconciliations
- KPI definition to match the corporate strategy and consolidated areas
- Designing a clear and understandable concern report
Regardless of the system landscape, a sleek and meaningful reporting system which takes into account the recipient circles can be established. Based on your strategy, structure, KPIs and standards we develop together with you a tailored reporting system as well as the appropriate control processes. Standardize your layout and improve the level of automation in reporting.
Base: the right IT solutions
The correct selection of the appropriate IT solution is critical. Decisions concerning consolidation and reporting solutions need to be met in the early stage of the project so that reporting can be aligned. Even very complex structures can be presented in a lean manner! The informational value is not achieved by quantity, but by clarity and accuracy.
We advise you objectively and neutrally.