Copyright©2025 Yonyou Group All rights reserved.Without the written permission of Yonyou Group, no part or whole of the content of this user manual may be copied, reproduced, translated, or reduced for any purpose. The content of this user manual may change without notice, please be aware.Please note: The content of this user manual does not represent the commitments made by Yonyou.Overall OverviewGlossaryLong-term Equity InvestmentRefers to the equity investments made by the investor to exert control or significant influence over the invested entity, as well as equity investments in its joint ventures. "Enterprise Accounting Standard No. 2 - Long-term Equity Investment."Consolidated Financial ReportIt refers to the report prepared by the parent company, which consolidates the financial status, operating results, and cash flow of the enterprise group formed by the parent and subsidiary companies as a single accounting entity. The parent company is an enterprise that has one or more subsidiaries; a subsidiary is an enterprise controlled by the parent company. The parent company must be legally registered and obtain the qualifications of a corporate entity as a holding enterprise.Statutory ConsolidationBased on the management needs of external organizations, and in accordance with the equity investment relationship between parent and subsidiary companies, strictly adhere to relevant accounting laws and regulations, with the aim of completing the consolidation process for external Financial Accounting statements.Management MergingThe process of consolidation based on various levels such as business scope, Profit Center, industry, Region, or division, for the needs of internal management of the Group or company.Full ConsolidationPrepare consolidated financial statements by merging the report items of the parent company and its subsidiaries, offsetting the parent company's investment income with the subsidiary's profit distribution items, and offsetting inter-company transactions. Under full consolidation, in the consolidated balance sheet, the parent company's long-term equity investment account is not listed as a separate item but is replaced by all the assets and liabilities of the subsidiary; in the consolidated income statement, the parent company's investment income account is also not listed as a separate item but is replaced by all the revenues and expenses of the subsidiary. If it is a non-wholly-owned subsidiary, the minority interest is recognized accordingly in the consolidated income statement.Proportionate ConsolidationIn contrast to full consolidation, the reporting procedure involves incorporating the assets, liabilities, income, and expenses of the investee enterprise into the financial reports of the investing enterprise based on the proportion of equity investment in the investee. That is, income and expenses are included in the income statement of the investing enterprise according to the proportion of equity investment, and the investment income is offset against the corresponding included income and expenses; assets and liabilities are also included in the balance sheet of the investing enterprise based on the proportion of equity investment, while long-term equity investment is correspondingly offset against the included assets and liabilities. (HK-GAAP, IFRS-GAAP)Adjustment VoucherThis means adjusting the individual financial statements or the consolidated financial statements of lower-level entities to align with the accepted standards for consolidated financial statements. Adjustments include various scenarios: adjustments where the accounting policies of subsidiaries are consistent with those of the parent company, adjustments from the cost method to the equity method, reclassification adjustments, etc.Offset VoucherConsolidated offset refers to the process where the parent company, when preparing the consolidated financial statements, offsets the differences between the impacts of inter-company transactions occurring between the parent company and its subsidiaries, as well as among the subsidiaries themselves, on the individual financial statements of the parent company and subsidiaries, and the related items in the consolidated financial statements. The accounting entries prepared by the parent company during the consolidated offset are referred to as offset vouchers.ControlIt refers to the investor having power over the investee, enjoying variable returns by participating in the relevant activities of the investee, and having the ability to influence the amount of returns through the power over the investee. "Enterprise Accounting Standard No. 33 - Consolidated Financial Report"Parent CompanyRefers to the control of one or more entities (including enterprises, separable parts of invested units, and structured entities controlled by the enterprise, etc., hereinafter the same). "Enterprise Accounting Standard No. 33 - Consolidated Financial Report"SubsidiaryRefers to the entity controlled by the parent company. "Enterprise Accounting Standard No. 33 - Consolidated Financial Report"; If the investor can exercise control over the invested unit, the invested unit is the subsidiary of the investor. "Enterprise Accounting Standard No. 2 - Long-term Equity Investment"Significant ImpactIt refers to the investor's power to participate in the decision-making of the financial and operational policies of the invested entity, but does not have control or jointly control with others over the formulation of these policies. "Enterprise Accounting Standard No. 2 - Long-term Equity Investment."Associated CompanySignificant influence on an enterprise, but not a subsidiary and not JV (IAS 28).Joint VentureRefers to an arrangement that is jointly controlled by two or more parties, and the company formed from the joint arrangement is called a Joint Venture (JV). "Enterprise Accounting Standard No. 40 - Joint Arrangements."DimensionThe perspective of viewing things refers to the specific classification of multiple interpretations of merged accounts or indicators. A merged account or indicator can be interpreted according to multiple dimensions.Dimension MemberSpecific members of each dimension.HierarchyHierarchical relationships between dimension members.PropertyUsed to describe the characteristics of dimension members. The uses of properties: member queries, filtering members in input tables and reports, and filtering in business rules, etc.Consolidated EntityVirtual entity used to store the merger results at each level in the consolidation system.MonomerRefers to all legal entities and organizations involved in the merger.FormThe user is the medium for inputting and viewing data.Product OverviewFinancial consolidation, as a financial report, must comply with the general principles and basic requirements for the preparation of financial reports. These basic requirements include authenticity and reliability, completeness of content, and materiality, among others.In addition to following the general principles and requirements for the preparation of financial reports, the preparation of financial consolidation should also adhere to the principle of integrity, which means that the consolidated financial statements reflect the financial position, operating results, and cash flow of an enterprise group composed of multiple entities.When preparing the financial consolidation, the parent company and all subsidiaries should be viewed as a whole, considered as a single accounting entity. The business activities of the parent company and subsidiaries should be considered from the perspective of the enterprise group as a whole, including the assessment of project significance.In the preparation of consolidated financial reports, economic transactions occurring between the parent company and its subsidiaries, as well as among subsidiaries, should be treated as internal transactions of the same accounting entity, which do not affect the financial position, operating results, and cash flow of the consolidated financial report.In addition, for certain special transactions, if the recognition and measurement from the perspective of the enterprise group differ from those in the individual financial reports, adjustments need to be made from the enterprise group perspective for the same transaction or matter.The application goal of the Financial Consolidation product is:Quickly produce consolidated financial statements that comply with financial reporting disclosure requirements.1) Quickly generate the main financial consolidation report;2) Quickly issue the notes and detailed tables for the Financial Consolidation.Minimize manual processing operations to achieve automation of the reporting process:1) Support for rapid data collection and data validation from multiple sources;2) Support for multiple currencies, automatic foreign currency conversion in complex scenarios;3) Support for automatic offsetting of transactions such as inter-company sales, receivables, and dividend distribution;4) Support for automatic calculation of various types of investment offsets and minority interests;5) Enables monitoring of the collection status of individual reports and the merging process.App ValueThe same financial organization can establish multiple accounting books according to different reporting requirements. The accounts, functional currency, and fiscal periods of each accounting book can differ to meet the accounting requirements of overseas listings and group enterprises with branches established abroad.Multi-consolidation organization support: Supports the establishment of a "Statutory Consolidation" structure based on equity relationships according to the needs of the enterprise, and also allows for the setup of a "Management Merging" structure by region and business segment;Support for changes in organizational structure: Support management of organizational structure and equity relationships by period, especially after changes occur in the organizational structure and equity relationships, the system can maximize automatic processing.Quickly and accurately collect and verify individual subsidiary report data and report notes;Supports data collection through various methods such as data integration tools, manual entry, and CSV import;Supports ensuring data quality by defining validation rules;Provide an inter-company transactions reconciliation platform that supports individual company accounting and consolidated accounting for inter-company transactions reconciliation.Support for Financial Reports Consolidation Methods:Support consolidation through "equity method adjustment";Support consolidation based on the "cost method";According to the requirements of accounting standards, support for setting different conversion methods for different report items, during the consolidation process, the system automatically performs the conversion processing for foreign currency reports.Support for various adjustmentsSupport for Audit Adjustments: Based on the characteristics of the annual audit (the audit report for the previous year may not be issued until March or April, while the reports for January and February have already been issued), there is a complete support plan for data processing before and after audit adjustments. It supports adjustments before consolidation as well as adjustments after consolidation.Support pre-conversion adjustments and post-conversion adjustments;Supports automatic equity method adjustments;Support for classification, tracking, and querying of various adjustments;Supports Excel client, meeting users' various output and display needs.Application ScenarioScenario 1: Multi-Criteria Financial ConsolidationA set of benchmark Chart of ...
