Consolidated Financial Report — Working Procedure

Read Subsidiary-A-FS.csv (and any PDF statement in this folder for subsidiary A).

Produce a structured summary:
1. Balance sheet (as at the reporting date): total assets, current/non-current split,
   cash, receivables, inter-company balances, payables, borrowings, equity items.
2. Income statement: revenue, cost of sales, gross profit, operating expenses,
   operating profit, finance costs, profit before/after tax.
3. Key notes extracted from the FS: revenue recognition policy, related party /
   inter-company transactions, guarantees, commitments, any audit qualifications
   or emphasis-of-matter paragraphs.
4. Anything unusual or material (> 5% of revenue, or > SGD 50,000) that the
   consolidating team must know.

Save as notes/subsidiary-A-summary.md

Read the group financial workbook (all sheets, including the consolidation working
paper). Summarise:
- the group-level trial balance / financials as prepared (which is the parent-only
  versus group picture, if both are present)
- any adjustments already booked in the working paper
- any notes, comments, or open questions the preparer has left in the file
Save as notes/group-financials-summary.md

Using the subsidiary summaries and the group financials:
1. List every inter-company balance or transaction I can identify between the
   parent and each subsidiary, and between subsidiaries (due to/due from, loans,
   dividends, management fees, sales between group companies).
2. For each, show: counter parties, amount, which books it appears in (parent, A, B, C),
   and whether both sides are present.
3. Identify the elimination entries needed for consolidation:
   - eliminate intra-group balances (due to/due from)
   - eliminate intra-group revenue/expenses
   - any dividends declared by subsidiaries to the parent
   - investment in subsidiaries vs their equity (share capital + retained earnings
     of each subsidiary at acquisition, and since acquisition)
4. Flag anything that appears on only one side — these need investigation before
   finalising. Save as notes/eliminations.md

The FS template structure is in csv/template/ (I will point you at it) and the
consolidation working paper is in the group financials.

Build the completed consolidation worksheet:
1. For each line of the template, put the parent's figure, each subsidiary's figure
   (A, B, C), and the consolidation adjustments from notes/eliminations.md.
2. Compute the consolidated column: parent + A + B + C + adjustments.
3. Where a template line has no data, leave it blank and list it in a "lines not
   completed" section at the end.
4. Save as csv/consolidated-working.csv AND as notes/consolidation-working.md (table
   format) so it can be reviewed by a human.

Then check your own work:
- Do total assets equal total liabilities + equity in the consolidated column?
- Do the subsidiaries' inter-company balances fully cancel out?
- Does consolidated profit reconcile to the sum of individual profits after
  eliminations?
Report the result of each check, and list any line that fails.

Using the template structure (csv/template/) and csv/consolidated-working.csv:

1. Produce the consolidated financial statement in the exact template layout —
   statement of financial position, statement of profit or loss, statement of
   changes in equity, cash flow statement (if in template), and the notes schedule.

2. For every note in the template, draft the note text using:
   - the group financials (for group-level figures and policies)
   - the subsidiary summaries (for anything specific to a subsidiary, e.g. its
     revenue recognition, loans, guarantees, commitments)
   Where the subsidiaries disagree on a policy or disclosure, say so explicitly.

3. Add a Comments and Review section as a separate part (not in the FS itself):
   - management comments on material movements and year-on-year changes
   - review notes: questions for each subsidiary's finance team, items pending
     confirmation, and anything the auditor is likely to ask
   - a sign-off checklist mapping each item to who approves it

4. Save:
   - consolidated-FS-draft.md (the full draft)
   - notes/comments-and-reviews.md (comments + review notes + checklist)

Perform a final QA pass on the consolidated FS draft:
- re-check that total assets = liabilities + equity (both current and prior year)
- check every line in the statement appears in the working paper with the same number
- check the notes tie back to the statement line items
- check year-on-year movements of > 20% are explained in the comments
- list any template sections still blank or any figure you could not source
Save as notes/qa-report.md