Definicja standardizing entry (EC-CS)

A journal entry used for adjusting the reported financial data so that it meets the policies and requirements of the corporate group.

Standardizing entries can be made to the reported financial data decentrally by the individual company being consolidated. However, often the standardizing entries required from the group point of view are not known to the consolidation unit.

If the consolidation unit reports its data in local currency, the standardizing entry is also made in local currency.

The reported financial data and the standardizing entries are then translated into group currency during the currency translation process.

In the Consolidation system, standardizing entries are stored in separate data records in addition to the reported financial data. This is to facilitate independent analysis of the data at any time.

Standardizing entries that simultaneously post amounts to balance sheet items and income statement items can cause an adjustment to net income, in which case the Consolidation system calculates the adjustment amount. This can lead to an allocation of deferred income taxes.