The Statutory Consolidated Financial Statements are prepared in accordance with the provisions of the 4th Council Directive.
Consolidated financial statements portray the financial position and results of a group as if it were a single entity. The statutory audit of consolidated financial statements should be carried out with no impediments and obstacles greater than those encountered in the statutory audit of the financial statements of a single legal entity. With the increasing complexity of international business and the ease with which funds can be transferred from country to country, it is of increasing importance that the statutory auditor of a group has a total picture of the significant activities within a group. This can be difficult in the case of groups having operations in more than one jurisdiction.

The 4th Council Directive Priorities and criterias for action requires:

• general provisions for the preparation of the Balance Sheet and Income Statement
• a structure of the balance sheet, in order to prepare a draft that provides a choice between two possibilities (horizontal or vertical);
• a structure of the Income Statement, in order to prepare a draft that provides a choice between several schemes (form horizontal or vertical configuration costs and revenues of production carried out or costs and revenues of production)
• assessment criteria
• contents of the Financial Statements and management report
• compulsory disclosure
• Mandatory Audit

For small and medium size Companies that do not exceed certain parameters, the directive allows the possibility to drawing up Financial Statements in a more synthetic, with fewer informative content and possible exemption from audit.

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Tagetik 4.0 creates value by simplifying complex business processes for CFOs and CIOs: budgeting, cash flow planning, statutory and management consolidation, cost allocation & profitability analysis, financial close & fast closing, dashboard & scorecarding, collaborative disclosure management, business intelligence and compliance/industry requirements.

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