What are the consolidation procedures?
Consolidation is a technique for collecting the accounts of several entities with common interests while preserving its legal personality.
CFR AUDIT Approach in Tunisia:
Our approach of consolidation procedure includes the following phases:
- Determining the scope of consolidation: the consolidated financial statements include all companies that are controlled by the parent company, with the exception of subsidiaries that are excluded by the standards.
- Homogenisation: restatement of differences and procedures in evaluation rules and methods.
- Integration of balance sheet and income statements in Tunisia.
- Elimination:
- Transactions that do not affect profit or loss
- Reciprocal transactions affecting the outcome
- Address the first consolidation gap
- Stock allocation
- Elimination of titles
- First consolidation deviation.
How can businesses benefit from this method?
Consolidation ensures that small and medium-sized enterprises can regain confidence in their sector by relying on the new availability of resources resulting from the rescheduling of their debts. In fact, short-term debts do not allow companies to have a financial plan that is adequate to their needs. On the contrary, it is possible to go back to planning medium or long-term activities thanks to debt consolidation.
Although this loan system does not definitively resolve the financial problems of the companies, it makes it possible to combine the expenses into a lower installment and possibly to obtain liquidity based on the agreements signed with the bank.
The creditor institution allows firms to overcome their debt emergencies in order to encourage their recovery and expansion by providing adequate financial resources.
Make a transparent and reliable choice with CFR AUDIT
When you decide to consolidate, it is always advisable to analyze the proposals of different credit institutions in order to find the most advantageous terms and the best techniques. At CFR AUDIT, we offer innovative, safe, and convenient solutions. Discover how CFR AUDIT works and how it can offer such advantageous solutions.