Entity package
Submitted reporting pack and sign-off
Proves each entity's reporting currency package before group conversion and eliminations.
CCY State Chain · State 07
Consolidation Currency
Consolidation currency is the group-level currency into which entity reporting packages unify — absorbing translation differences, elimination logic, and ownership adjustments. State 07 is the altitude where multi-entity FX complexity peaks before audit narratives finalize.
Group Altitude
Where entity truths merge into one reporting spine.
Subsidiaries may close confidently in local reporting currencies yet collide when consolidation engines translate into group presentation currency. Treasury hedges, statutory accounts, and management packs must reconcile to this spine or fragment under investor scrutiny.
Custody Question
Which group currency converts diverse entity packs into a single defensible group statement — and how are translation reserves governed?
Position in Chain
Consolidation Currency inside the chain of custody.
Consolidation currency consumes reporting outputs from State 06 and prepares the unified posture examined during audit reality at State 08. Weak lineage between entity account discipline and consolidation bridges produces unexplained CTA swings.
Quoted Currency
Market quotation before obligation attaches.
Transaction Currency
Denomination of the recorded financial event.
Settlement Currency
Cash or settlement rail actually moved.
Account Currency
Assigned custody currency for maintained balances.
Ledger Currency
Books maintained for the entity.
Reporting Currency
Presentation layer for management and filings.
Consolidation Currency
Group currency unifying reporting entities.
Audit Reality
Traceable, defendable monetary truth.
Evidence Map
Artifacts that make Consolidation Currency defensible.
Each state must be provable through artifacts, not asserted through narrative. These evidence classes define what reviewers should be able to inspect before this state passes downstream.
Elimination
Intercompany and ownership adjustment support
Shows how group-level adjustments altered currency presentation without destroying lineage.
Group bridge
Consolidation currency roll-forward
Connects entity packages, translation effects, and final group statements.
Control Artifacts
Minimum governance artifacts for this state.
| Artifact | Owner | Purpose |
|---|---|---|
| Consolidation package checklist | Group reporting | Confirms entity submissions are complete and currency-ready. |
| Elimination journal support | Consolidation team | Documents group-level adjustments and currency effects. |
| CTA and ownership roll-forward | Financial reporting | Proves translation and ownership movements through group currency. |
Risk if weak
Opaque elimination journals
Complex adjustments hide upstream account mis-assignments until variance analytics collapse during audit readiness.
Control logic
Consolidation governance forums
Institute recurring CFO-sponsored forums tying consolidation currency outcomes to entity-level custody dashboards.
Transition Logic
What this state receives and what it passes forward.
Receives From
Entity reporting packs, translation schedules, and ownership structures.
Passes To
Group disclosures, audit workbooks, and investor-ready narratives.