The Fast Close Toolkit

CHAPTER TWENTY FIVEProcess Narratives for the Corporate Close and Consolidation Process

PROCESS NARRATIVE 5: BALANCE SHEET CONSOLIDATION

Introduction: This process narrative defines the steps for the consolidation of fiscal information for the balance sheet in the Corporate Close and Consolidation process. Roles and responsibilities to ensure good segregation-of-duties controls are identified throughout the process.

Process Activity Description

Consolidated Balance Sheet Model: The accountant maintains a password-protected model for the company consolidated balance sheet. The model contains worksheets for individual balance sheet line items, which are used for trending and analysis. Finally, the model contains the 10K and 10Q balance sheet formats. These worksheets are used for yearly and quarterly reporting needs. Balance Sheet Worksheets: The accountant compares totals on the worksheet to the rounded totals on the balance sheet worksheets (presentations and SEC filings are rounded to $million to ease reporting), for both Assets and Liabilities/Shareholders' Equity, to ensure all ledger activity has been properly captured in the model. Balance Sheet Totals: If totals do not match the rounded balance sheet totals, the accountant investigates and resolves any differences. Monthly Closing Package: The accountant links the model directly to the monthly closing package. This link ensures that the presentation is consistent with the model, and reflects the most up-to-date ...