Consolidation software for Dutch consolidated annual accounts

The short answer

Consolidation software turns the annual accounts of a parent and its subsidiaries into one set of consolidated annual accounts. For this, the consolidation module of Jaarrekening.io reads the locked figures of every legal entity in the group, performs capital consolidation and eliminations, and delivers a consolidated balance sheet, profit and loss account, cash flow statement and notes as a draft.

When do you have to consolidate?

Legal framework: art. 2:405 DCCart. 2:406 DCCart. 2:407 DCCart. 2:408 DCCart. 2:403 DCC

A legal entity that heads a group prepares consolidated annual accounts with the data of its subsidiaries and other group companies (art. 2:406 DCC). In these annual accounts the assets, liabilities, income and expenses of the group are included as a single whole (art. 2:405 DCC).

There are exemptions. Consolidation may be omitted if the group stays within the limits for small entities on a consolidated basis on two consecutive balance sheet dates, no company to be consolidated is a public-interest entity (as referred to in art. 2:398(7) DCC) and the general meeting does not object in writing within six months of the start of the financial year (art. 2:407(2) DCC). An intermediate holding company can, under conditions, be exempted if its part of the group is included in a larger consolidation (art. 2:408 DCC). Separately, a subsidiary can use art. 2:403 DCC to limit the format of its own annual accounts.

What the consolidation module does

What the module does not do

• You enter intra-group positions and transactions yourself; the module does not look them up automatically in the accounting records.
• The module translates a group member in foreign currency according to RJ 122 (historical rate for equity, average rate for the result for the year); you enter the exchange rates yourself.
• The exemption for a small group (art. 2:407(2) DCC) is tested indicatively by the module, on both balance sheet dates and with a net and a gross test. A stock exchange listing and the public-interest entity category that you enter for the legal entity exclude the exemption; whether a legal entity falls in that category, you judge yourself. It does not test the intermediate holding company exemption of art. 2:408 DCC.
• No Word or XBRL export of the consolidated annual accounts.
• The texts of the notes and the management report are templates, not AI drafts. You book the release of negative goodwill manually.
• All group members must be in the same workspace, with locked annual accounts.

Link with the stand-alone annual accounts

The module starts from the stand-alone annual accounts. Each group member first prepares its own annual accounts and locks them; the consolidation then reads the recorded figures and writes nothing back. An error in the consolidation therefore never changes the annual accounts of a subsidiary.

In the stand-alone annual accounts of the parent, participating interests are usually stated at net asset value. The parent's equity then generally agrees with group equity excluding minority interest; a difference is a reason to review the participating interests and the eliminations.

Availability in the app

Add-on, not yet in the menu. This module has been built and is purchased per workspace as a separate subscription, but is currently not in the app menu: the product focus is on annual accounts, bookkeeping, taxes and payroll. If you want to use the module, please get in touch or email info@jaarrekening.io. The current module prices are on the pricing page.

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