The chart of accounts is the structured list of every account in the general ledger, with codes grouped into assets, liabilities, equity, income and expenses. Groups often map local accounts to a group chart for consolidation and reporting.
General ledger (GL)The general ledger is the master record of all accounts of an entity, organised by the chart of accounts, from which the trial balance and financial statements are produced. Detailed transactions often sit in sub-ledgers that post summarised entries to it.
Journal entryA journal entry records a transaction in the books with equal debits and credits, a date, accounts and a description. Manual journals posted at period end are a classic audit focus because they can bypass system controls.
Statutory accounts (annual financial statements)Statutory accounts are the annual financial statements an entity must prepare and file under company law, under local GAAP or IFRS. In the EU, listed groups use IFRS for consolidated accounts under the IAS Regulation, and the Accounting Directive sets the content for local accounts.
General ledger (GL)The general ledger is the master record of all accounts of an entity, organised by the chart of accounts, from which the trial balance and financial statements are produced. Detailed transactions often sit in sub-ledgers that post summarised entries to it.
Consolidation (group accounts)Consolidation combines the financial statements of a parent and the entities it controls into one set of group accounts, as if they were a single economic entity. Intercompany balances and transactions are eliminated, and non-controlling interests are shown separately. IFRS 10 defines control.