Management accounts, IFRS adjustments and group reporting packs, with reconciled balances and consolidation support for owners and parent companies.
A client had information about management, IFRS and group reporting but could not see a clear way to put it into practice. ARG identified gaps in the existing records and documented the order in which the reporting work should proceed.
The client then understood what was pending and how each step fitted into the process. The work focused on connecting the available records to a reporting sequence that the people involved could follow.
ARG can help you
Specify management reporting, statutory statements or a parent package, and establish the Bulgarian framework and any EU-adopted IFRS requirement.
Provide a closed trial balance, comparative figures, asset and lease schedules, contracts and the parent’s reporting instructions.
Map controlled entities and ownership rights; reconcile intercompany balances, transactions and supporting agreements before consolidation.
Agree documented accounting adjustments, reviewers and reporting dates, with separate audit, tax and publication milestones.
Management reporting supports decisions inside the business. Its contents might include margins, cash forecasts, overdue receivables or performance against a budget. The starting question is what management needs to decide and which reliable records can answer it. A dashboard has little value if its figures cannot be reconciled to an agreed source.
Statutory financial statements follow the accounting framework applicable to the Bulgarian entity. Under Accountancy Act Article 34, National Accounting Standards are the general basis, while specified financial institutions, insurers, listed issuers and other named entities must use International Accounting Standards; qualifying other enterprises may choose them. For Bulgarian statutory purposes, the relevant international framework is the standards adopted by the EU, not any unendorsed group policy labelled IFRS. Review the entity’s status and past changes of accounting basis before making an election, because the Act restricts repeated changes. Article 34; EU Regulation 1606/2002.
Group reporting may mean a subsidiary’s package to its parent or full consolidated financial statements presenting a parent and its controlled subsidiaries as one economic entity. Under IFRS 10, control involves power over relevant activities, exposure or rights to variable returns and the ability to use that power to affect those returns. Share ownership is important evidence, but contractual rights and the actual decision-making arrangements also matter. Obtain the ownership chart, shareholder agreements and governance documents before defining the consolidation perimeter. A monthly management pack is not automatically a complete set of IFRS statements. IFRS 10 control and consolidation.
Begin with an agreed trial balance for a defined period. Identify the ledger version, currency, cut-off date and person responsible for the local close. Then map the local accounts to the reporting lines required by the group. Some accounts may need supporting analysis rather than a simple one-to-one mapping.
Keep classification changes separate from accounting adjustments. Moving an expense into a different reporting category is different from changing when an item is recognised or how it is measured. A reconciliation should show how the original local figures become the submitted group figures, with an explanation and supporting calculation for each adjustment.
For example, IFRS 16 explains the recognition of lease assets and liabilities and its exemptions. Where the applicable bases differ, renaming a rent account will not resolve the reporting difference. The underlying contract and accounting policy need review. ARG can organise the mapping and adjustment file with the local accountant and group finance team so that the package remains traceable and repeatable.
Tell us where you live, how your business works and what you want to change. We will help you identify the questions to resolve and the next steps to consider.
The core file normally starts with the trial balance, general ledger, prior financial statements and the group's reporting instructions. Add the supporting schedules relevant to the business, such as fixed assets, leases, loans, receivables, inventory and related-party balances. Existing accounting policies and prior audit adjustments help identify recurring issues that should be addressed early.
Management should confirm the reporting period, required comparatives, materiality expectations and approval timetable with the intended recipient. If there are several entities, identify the reporting perimeter and the contact responsible for each package. Unclear ownership of a schedule can cause more delay than the calculation itself.
A gap list turns missing information into an actionable plan. Each item should state what is missing, why it matters, who can provide it and which decision depends on it. ARG can help prioritise that work so that the team resolves significant recognition, valuation or completeness questions before spending time polishing the presentation. Assumptions should stay visible until they are confirmed.
Group entities may record the same transaction at different times or under different references. Compare balances by counterparty and transaction rather than relying only on matching account totals. Differences may arise from timing, exchange rates, invoices in transit, disputed charges or incomplete records. The reason determines the appropriate follow-up.
For each intercompany difference, record both entities, currency, reporting date, invoice or agreement and the proposed correction. Confirm whether the mismatch is an error in local books or a consolidation adjustment. Group consolidation removes qualifying internal balances and transactions and may also require eliminating profit on goods still held within the group; matching a loan balance alone does not complete the exercise. Keep these eliminations separate from local statutory entries and document how they reverse or carry forward next period. IFRS 10 consolidation framework.
Use a controlled adjustment register during the close. Record the preparer, reviewer, rationale and effect on the reporting package. If the underlying data changes after review, assess the impact on the package and its supporting schedules before issuing a revised version. ARG can coordinate that process and help management understand the remaining differences, while the group retains responsibility for its accounting decisions and final approval.
A group may need monthly figures well before the local annual statements are approved or published. Build a calendar that distinguishes the operational close, group submission, management approval, any required independent audit and statutory publication. One milestone should not be presented as evidence that every other obligation is complete.
For active Bulgarian traders within Accountancy Act Article 38(1), ordinary publication of adopted annual accounts is due by 30 September of the following year. Corporate-tax filing and payment ordinarily end on 30 June, while a parent may require monthly figures much earlier. Establish audit under Article 37 separately from the decision to prepare an IFRS package. A company can need audit because of its category or group position even when management initially requests only monthly reporting. Build all three timetables into the close calendar. Accountancy Act, Articles 37–38.
Agree what the appointed auditor needs and when supporting schedules should be ready. Preparing financial information and independently auditing it are distinct engagements. A useful reporting process gives the reviewer a clear trail from the source records to the approved output, with unresolved matters identified. ARG can help assemble and coordinate that trail, then leave the business with a documented process for the next reporting period.
Compare the related procedures in this category, including their requirements and the stage at which you need them.
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