FAS Fundamentals

Organizations operating in Finland prepare consolidated financial statements under KPL and regulations issued by the Finnish Accounting Standards Board (KILA). FAS consolidation presents the financial position and performance of a group as a single reporting entity.

Consolidation obligation

Criterion	FAS requirement
Control trigger	Parent holds the majority of voting rights, or has the right to appoint or remove the majority of the board.
Size-based exemption	Small groups may be exempt — verify current KPL thresholds at the time of implementation.
Inclusion requirement	All subsidiaries regardless of seat or legal form must be included (completeness principle).
Exclusion options	Entities with lasting severe restrictions, disproportionate cost of obtaining information, held for short-term resale, or of minor importance may be excluded.

Note: Size thresholds are subject to legislative update. Verify current KPL thresholds at the time of implementation.

Goodwill and negative goodwill (FAS)

Goodwill is amortized on a scheduled basis over its useful economic life per KPL.
If the useful life cannot be reliably estimated, amortize over the maximum period per KPL — verify the current maximum at implementation.
negative goodwill / negative difference — assessed per KPL; typically recognized in equity or released to income under defined conditions.

Note: Goodwill amortization period and negative goodwill treatment under FAS must be confirmed with a FAS-qualified accountant before configuration.

Currency translation (FAS)

Account type	Rate	FAS rule
P&L accounts	AVG (average rate)	Earnings occur throughout the period.
Balance sheet accounts	END (closing rate)	Point-in-time valuation.
Equity accounts (except period result)	HISTAVG (historical rate)	Rate at the date each equity component originally arose — fixed permanently. Not the opening rate of the current period.
Muuntoero (CTR)	CTR (plug)	Translation difference posted within equity — not OCI.

Mandatory consolidated financial statements

Statement	Finnish term	Status in Lineos
Consolidated balance sheet	Konsernitase	Covered
Consolidated income statement	Konsernin tuloslaskelma	Covered
Consolidated cash flow statement	Konsernin rahoituslaskelma	Confirm activation with Paul
Statement of changes in equity	Laskelma konsernin oman pääoman muutoksista	Confirm activation with Paul
Notes to consolidated accounts	Konsernitilinpäätöksen liitetiedot	Manual — outside engine