By International Credit Reports
Read whose figures are being presented
Before interpreting revenue, cash, or liabilities, identify the reporting entity and scope of the accounts. Consolidated figures describe a group within the applicable accounting framework. Separate or standalone figures concern an individual entity, but you should read the source’s own labels and notes rather than assume a document title tells the whole story.
Match that scope with your commercial question. If your agreement names a subsidiary, a parent’s group accounts can add context without establishing the subsidiary’s own financial position. Keep the two sets of evidence distinct in your research file.
IFRS 10 describes consolidated statements as presenting a parent and its subsidiaries as one economic entity. The relevant accounting basis and consolidation scope still need to be read in the actual accounts. IFRS Foundation: IFRS 10.
Label each set of financial information
Add these fields to your review before copying numbers into a comparison. It helps prevent a group’s headline revenue from being placed beside a subsidiary’s liabilities as though both describe the same business.
| Field | What to record |
|---|---|
| Reporting entity | Exact name and identifier where available |
| Scope | Group/consolidated, separate entity, or unclear |
| Period | Start and end dates and any comparative period |
| Basis | Currency, units, accounting basis, and relevant notes |
| Relationship | How the reporting entity connects to the contractual counterparty |
| Gaps | Which entity-level information remains unavailable |
Example: group revenue does not become subsidiary revenue
Assume a fictional group reports USD 200 million of consolidated revenue, while your agreement names one small distribution subsidiary. You cannot enter USD 200 million as that subsidiary’s revenue without a source establishing it. Ask for the subsidiary’s own available figures or record that the entity-level amount is unavailable.
Similarly, do not add subsidiary revenue to consolidated group revenue as though they were independent totals. That can double-count activity already included in the group information. Use the scope stated in the accounts and seek clarification where the available summaries do not permit a meaningful comparison.
Ask what additional evidence would change the review
A useful follow-up identifies the precise missing piece: the contracting company’s latest available accounts, a particular financial period, or evidence supporting the claimed group relationship. Asking for ‘more group information’ may produce another presentation without answering the company-level question.
If your decision depends on support from another group company, examine the actual arrangement through the appropriate approval process. Ownership, branding, or consolidated reporting should not be treated as proof that the parent will settle a subsidiary’s invoice. The company report remains information for your review, with the subject and scope clearly identified.
Define the entities in your research request
Explain whether you need information about the contracting company, its parent, or both, and identify any essential entity-level financial evidence.