Download V: Intercompany Reconciliation and Elimination (.xlsx)
What it does
Lists each pair of group entities (for example trust, HoldCo and SPVs) and each type of balance, compares the two sides, takes off explained differences, flags what is still unexplained and gives the totals to eliminate on consolidation.
Who it is for
Group finance and consolidation teams in InvITs and holding structures.
How to use it
- Go to 'Entities'. List the group entities and give each a short code.
- Go to 'Balances'. For each intercompany balance, type the entity, the counterparty, the type of balance and the balance in the entity's books. Use + for an asset (receivable, loan given) and - for a liability (payable, loan taken).
- Type the balance the counterparty shows for the same item in its own books (it should have the opposite sign).
- If there is a known reason for a difference (an invoice in transit, interest booked on different dates, a foreign exchange rate), type it in 'Explained difference' with a short note.
- Read the 'Status' column and the 'Summary' tab. Unexplained differences must be cleared before consolidation.
Tabs in the file
| Tab | What it holds |
|---|---|
| Entities | Group entities and rounding tolerance. |
| Balances | Intercompany balances from both sides. |
| Summary | Totals by type, elimination amounts and checks. |
Learn the topic
For computation and reconciliation assistance only; not a substitute for formal statutory audit or legal tax advice. All sample data is illustrative and made up. Rates, limits and rules must be checked against current law and your own agreements before use. No tax saving, audit outcome or compliance result is promised.