Murgese Consolidate Pilot

What the group owes itself, taken out once

A group cannot owe itself money or make a profit selling to itself. Murgese Consolidate proposes each elimination as a journal you can read, and takes out only what cancels. Whatever does not cancel stays on its line, with its size and both companies named.

  • Proposed, then appliedAmounts owed between group companies, sales and purchases between them, and each investment against the subsidiary's equity are proposed as journals that add to nil, line by line, before anything is applied. Each one can be taken back out.
  • A difference is never pluggedOnly what cancels is eliminated. Where two companies disagree about what one owes the other, the difference stays on its line, with its size and both companies named, until somebody explains it.
  • Cut-off, read from the ledgersWhere the general ledgers are imported, a difference at the year end is explained by reading the months after it, and one charge of £36,000 can be paired against twelve instalments of £3,000.
  • Profit in stock the group sold itselfThe one intra-group figure no trial balance carries is the profit in stock one group company sold another and still holds at the year end. It is asked for, selling company by selling company: how much is still held at what the buyer paid, the margin, and where the two figures came from. FRS 102 paragraph 9.15 takes it out in full.
  • Nil is an answerWhere none of what a company sold is still held, nil is recorded as the answer. A company with no answer is one nobody has asked about, and the accounts wait for it.
  • Off the seller's columnThe profit comes off the company that made it, so where the seller is partly owned, its minority bears its share of the elimination.
  • An associate's dividendA dividend from an associate is taken out of group income, because the group has already taken its share of the profit it was paid from.
  • Accepted means accepted, until the figures moveAn accepted elimination whose figures change goes back to outstanding, and the accounts are not produced until it is looked at again.
Eliminations in Murgese Consolidate: amounts owed between two group companies, and goods sold between three of them, each taken out as a journal that adds to nil.
Eliminations in Murgese Consolidate: amounts owed between two group companies, and goods sold between three of them, each taken out as a journal that adds to nil.
Stock the group sold itself: for each selling company, the stock still held at what the buyer paid, the margin, and the profit taken out of the consolidated figures.
Stock the group sold itself: for each selling company, the stock still held at what the buyer paid, the margin, and the profit taken out of the consolidated figures.

Murgese Consolidate, on a demonstration group. The group and every figure are invented.

Try it on a group you have already filed

The way to judge consolidation software is on a group whose accounts are signed: run it through and compare the result. Murgese Consolidate is not on general sale, and the pilot is the way in. It is free for the whole pilot, then a pilot tester's price, set out in writing before the pilot ends and held for two years from the day the licence starts.

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