Klaveness Marine Holding partnered with the Pacioli Network to implement CCH® Tagetik, a state-of-the-art tool designed to streamline group financial reporting. The solution addressed two key areas: consolidation of full subsidiaries and application of the equity method for associated companies and joint ventures.

Consolidation of Full Subsidiaries

For full subsidiaries, typically with an ownership of 50%–100%, CCH® Tagetik fully consolidates financial statements by aggregating data and eliminating intercompany transactions. General ledger data from the central ERP system (Xledger) is imported via ETL, then processed based on the Ownership Structure Register (OSR) and predefined consolidation rules. Key automated features include:

• Foreign currency conversion
• Intercompany and financial investment eliminations
• Reclassification of non-controlling interests
• Other automations, e.g. for netting or reclassification
• Journal entries for group-specific adjustments

Consolidation of Associated Companies and Joint Ventures (Equity Method)

For associated companies and joint ventures, typically with an ownership between 20%–50%, the equity method is applied instead of full consolidation. This method records the investment at cost, then adjusts its value based on the investor’s share of the company’s profits, losses, dividends, and other equity changes. Excess values are identified and depreciated as needed, offering a more accurate reflection of the investment’s value on the group’s balance sheet.
To support this process, CCH® Tagetik allows for the provision of all relevant information through several avenues:

• Ownership Structure Register (OSR) for the registration of ownership events including
  • Investment, equity, and excess values at acquisition
  • Change in shares
  • Other events
• Depreciation proposals for
  • Depreciation schedules for excess values
• Equity data entry form (for associated companies and joint ventures) to enter
  • Profit or loss
  • Dividends
  • Reserve changes
  • Capital increase or decrease
• Journals for
  • Write-downs
  • Other group-specific changes

Based on the provided information, CCH® Tagetik applies the equity method in 5 steps: 

With this new solution, Goodtech AS has streamlined its financial reporting process around CCH® Tagetik in five key steps: Data Provision, Consolidation, Reporting, Disclosure, and ESEF Reporting.

1. Data provision

Data is integrated into CCH® Tagetik from multiple sources. General ledger data is extracted via API from the company’s central Azure Data Lake, while IFRS 16-related data is imported via ETL from its ShareControl solution. Additional data, particularly for closing documents, is entered directly into CCH® Tagetik using data entry forms.

2. Consolidation

Once the data is provided and based on Goodtech AS’s parametrization, CCH® Tagetik automatically executes a range of tasks, including:

• Carry forward opening balances
• IFRS adjustments
  • IFRS 16 adjustments based on imported data
  • IFRS 5 adjustments using CCH® Tagetik inbuilt “held-for-sale” module
  • Other automatic and manual IFRS adjustments
• IC (intercompany) matching and elimination
• Equity elimination, including purchase price allocations and handling of excess values from acquisitions
• FX (foreign exchange) conversion and calculation of reserves
• Calculation of equity from non-controlling interests

This consolidation process incorporates various management reporting dimensions—such as local accounts, projects, business units, and work orders—automatically synchronized with Goodtech AS’s ERP systems.

3. Reporting

Building on the previous steps, CCH® Tagetik generates financial and management reports, including the Annual Report, Quarterly Report, and detailed Monthly Management Reports. These reports can be accessed via the integrated Excel add-in or directly in the browser, leveraging extensive drill-down functionalities.

4. Disclosure

Once reports are finalized, data tables are seamlessly integrated into financial report documents using CCH® Tagetik’s Word add-in. Here, financial data is enriched with narratives to meet reporting requirements for the Annual and Quarterly Reports.

5. ESEF reporting

In the final step, Goodtech AS utilizes CCH® Tagetik’s ESEF tagging module to prepare an XHTML file using iXBRL, ready for direct upload to the national database.

The implementation of CCH® Tagetik enabled the client to handle the entire group close & consolidation process in one platform – from data import to publication in a Word document – all while reducing time spent and improving data quality. Most changes to the group structure, data model or other specific accounting cases (e.g. regarding IFRS 5) are covered by CCH® Tagetik’s inbuilt standard functionalities. Any remaining special cases can be handled by posting a group journal – less than a handful in the case of the client. Data from the ERP and other supporting systems is imported directly into the consolidation engine with just a few clicks. The entire Fair Value calculation and adjustment is performed by a calculation logic based on imported data prepared by the external valuator and minimal enrichment of the data. The processed and consolidated data is automatically updated in the new financial report in Word, which leaves only narratives to be updated manually.

The implementation of CCH® Tagetik resulted in a drastic reduction of time and effort while at the same time significantly improving the data quality and granularity:

• Significant reduction of non-value-adding activities
• Improved data quality
• Extensive analysis capability, e.g. eliminations, adjustments and FX effects per property or entity
• Fully automated FV calculation and adjustment
• Errors from the source data identified in CCH® Tagetik lead to improvements in the ERP system
• Full transparency and documentation of all steps

The overall time-reduction and availability of data enabled the accounting team to strengthen its role in the group’s Financing and M&A activities.