How does FCC treat financial adjustments during consolidation?

Financial adjustments during consolidation are recorded using consolidation journals, which is the correct practice within Oracle Financial Consolidation and Close (FCC). Consolidation journals allow for the systematic tracking and recording of any adjustments that need to be made to the financial data during the consolidation process. This ensures that all financial figures reflect the necessary changes and comply with the applicable accounting standards.

Using consolidation journals is crucial because it supports traceability and accuracy in reporting, enabling organizations to maintain an updated and correct set of consolidated financial statements. These journals help in capturing any discrepancies or required amendments, thus contributing to the integrity of the financial consolidation process. In contrast, ignoring adjustments or necessitating resubmission for approval would hinder the efficiency and accuracy needed in a timely financial reporting landscape. Similarly, setting a threshold for when adjustments are considered could lead to the omission of significant adjustments that might impact the overall financial health of the organization.