1.41 What is the best practice for setting up a consolidated CaseWare file?

A.Consolidation dialog box:

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Consolidation file
Avoid posting adjustments directly in the Consolidation file. Set up a separate Consolidation adjustments Caseware file to post this year’s (and prior year’s if necessary) consolidation adjustments. This file is added to the consolidation like a subsidiary file. This will make it easier to re-perform the consolidation in a new file in case the consolidation file is corrupted in any way. In addition adjustments are easier to control in a smaller separate file.

Give the Consolidation file an abbreviated name such as “CF” above. This is not automatically created by Caseware when opening a new consolidation dialog box and it is necessary for certain Caseware automatic documents such as the Consolidated Trial Balance to work.

Parent co file
The parent company Caseware file forms part of the consolidation tree like a subsidiary file. In this way separate financial statements of the parent can be created which will not be part of the Consolidation Caseware file. In addition this will make it easier to re-perform the consolidation in a new file in case the consolidation file is corrupted in any way.

Consolidation tree
The consolidation tree may be set up to show sub groups only if there is need to present subgroup figures separately, otherwise it is simpler to just add all subsidiaries in one level under the consolidation file as shown below:

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