Design And Implementation Of The Management System For Consolidated Financial Statements

The consolidated financial statement is compiled by the parent company,regarding the enterprise group formed by parent and subsidiary companies as an accounting entity. Consolidated financial statements are important content of the comprehensive reflection of enterprise group overall financial position, operating results and cash flow.In recent years,the State Ministry of Finance and the SASAC have put forward higher requirements of central enterprises financial information work, emphasizing on constructing an improved financial information system which contains the financial combined statement system.At the same time, for group enterprises, the requirements in efficiency and accuracy to the consolidated financial statements are increasing. Listed enterprise groups put forward higher requirements on the timeliness, compliance and the level of detail disclosed by financial reports. However, at present, consolidated statements work for some enterprises is still in manual operation, with a longer compiled cycle and larger workload. The manual management has been unable to adapt to the new requirements of the management. Therefore, to realize the consolidated financial statements by computer systems is an important part of the financial informationization construction in order to improve the work quality and efficiency of the consolidated statements.The consolidated financial statement system forms the business framework from the practice, learning related and mature system at home and abroad, accepting financial expert’s advice, bringing together the best business practice from industry, forming the data processing flow in accordance with the financial system requirements and enterprise management requirements.The consolidated financial statement system analysizes the execution process of the actual business. It forms six major modules: Data collection and verification,Internal reconciliation,Report summary,Offset processing,Consolidated statements and Combined analysis.The consolidated financial statement system can provide good scalability and flexibility,adapt to the organization change of the group company. At the same time, it can support the group company in the automatic conversion of multi currency with a variety of accounting standards listed in different countries. On the basis of the legal organization structure of the group company, multiple sets of management organization structures can be derivedwhich can be used to adapt to the change management needs at any timeand simulate and merge different conditions hypothesisand make analysis with contrast.In this paper, according to the actual needs of the FAW Group financial consolidated statements, an consolidated financial statement system is developed. JAVA language, J2 EE development platform, Oracle 10 g database are mainly applied to develop this system. The consolidated financial statement system realizes the program development of six big modules.The application of the consolidated financial statements system can achieve internal transaction confirmation based on insider trading vouchers, balances and amounts,realize the refinement of the preparation of consolidated financial statements. It can avoid manual operation in the data extraction, offset and merger, improve work efficiency. The system provides integrity, consistency, reasonableness check function, and realizes all the offset of internal transactions, improves the quality of consolidated financial statements. Disclosed data is formed from the unified data source, which can ensure the consistency of information disclosed by both parties of the transaction. In addition, the system can manage the whole merger processand keep the most complete audit trail. This can provide good data base for the query, statistics and analysis in the future. It can also provide fast, accurate decision basis for the information managementand be of great significance to improve the economic efficiency of enterprises and market competitiveness.Data collection and verification and internal reconciliation modules of the consolidated financial statement system are put into trial officially by FAW Group and operates normally.The system can improve the staff’s efficiency, refine the financial management of the company, free people from the tedious work of reconciliation. Subsequent offset and merger work is also imminent. Therefore, the construction and improvement of measurement of consolidated financial statement system have become very necessary and urgent.