A few months ago, I had compiled a short list of common errors encountered in the consolidation of foreign operations. Now, I wish I had simply waited a few months to publish the post as I have since come across more issues that merit a mention while consolidating financials of related entities or even preparing the separate financials of related entities. Bear in mind that some of these could apply irrespective of whether they are related to foreign entities.
In a previous post (Part I), I introduced the idea of the Cash Flows Statement reluctantly trapped in a Cinderella existence. But, with a little understanding, it doesn’t have to stay that way.
“Cinderella” (from Merriam Webster)
- “someone or something that is ignored but that deserves attention or credit”
- “someone or something…that is not expected to do well but that succeeds or wins in a very exciting way”
OK, so maybe the second bullet is a little over-the-top for a financial statement, but you get the point.