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Article: Ledgers are often not the best tool for financial consolidation.(bespoke software)
- Article from:
- Management Accounting (British)
- Article date:
- February 1, 1996
- Author:
CopyrightCOPYRIGHT 1996 Chartered Institute of Management Accountants (CIMA). This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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'The perfect solution for financial consolidation is to implement the same general ledger package at every site around the world', said a prominent consultant at a recent round table discussion on financial consolidation. 'You can then use the package to carry out the consolidation.' This remark, of course, assumes that you have a perfect company to start with! Many accounting system vendors are putting out the same message to their prospects, but most companies are too diverse for this to be practical.
The use of a nominal ledger to carry out financial consolidation in a group of companies is only appropriate for a small number of organisations that have identical ...