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Case Studies

  1. Case1

    Cross-border M&A / PMI

  2. Case2

    Introduction of group management system

  3. Case3

    Global BPO with cloud-based accounting system

  4. Case4

    Support for global internal audit

  5. Case5

    Rearrangement of group capital scheme and reorganization procedures

  6. Case6

    Documentation in BEPS project

Case1 Cross-border M&A / PMI

Acquisition of a multinational company by a listed company

Fair Consulting Group organized a cross-border team and performed the due diligence in 3 countries and consolidated-basis share valuation.
As a result of the due diligence, some accounting issues were found in a Thai subsidiary. We supported improvement of its business process and accounting system, then provided BPO through Fair Consulting Thailand, so that the business system that achieves the consolidated financial reporting was established in the overseas subsidiary.

Phase1 Due diligence / share valuation Effective implementation of project by the cross-border team with the local expertise Final agreement, Share transfer procedures Accounting PMI support Phase2 Business process building and accounting system data preparation Consulting in the light of PMI in order to resolve the issues found through DD procedures Phase 3 BPO (Bookkeeping / tax return filing on behalf of the client) Performing bookkeeping with Thai staff as well as periodic reporting by Japanese manager in order to reduce the governance risk

Case2 Introduction of group management system

Establishing monthly consolidated financial reporting system in an unlisted middle-sized company

The company has many overseas subsidiaries and hence many intra-group transactions. The company had not managed to make management decision from the perspective of group accounting as it had not yet prepared consolidated financial statements, and financial institutions also requested consolidated financial results. The monthly consolidated financial reporting was necessary, and Fair Consulting supported the company from the phase to consider the method of setting up the operation system.

Solution

“Multidimension”, “multilingual”, “multi-currency”, and “multi-bases” are essential requirements for monthly consolidated financial reporting system. The project was commenced with focusing on “introduction of global consolidation management system” and “establishment of operation system (including training and agency service).”

Operation
Phase1 Defined operation requirements (identified required specification/understanding the current situation), defined the requirements for system (identified functional requirements/non-functional requirements), and selected the adequate system Phase2 Introduced the system and supported the operation
Online data entry to Cloud-based business management system at parent company, domestic subsidiaries, overseas subsidiaries. The parent company can output forms from the system.(Monthly consolidation work sheet, Monthly business performance management by business unit and Monthly business performance management by customer)

Case3 Global BPO with cloud-based accounting system

BPO related to accounting works of ASEAN-located affiliated companies of a major global company

In progress of BPO of administrative works in a major global company, Fair Consulting Group engaged in BPO of accounting and tax works of the ASEAN-located subsidiaries.
Visualizing accounting data of overseas subsidiaries was realized by applying the cloud-based accounting system to their bookkeeping process.

Overseas FC offices: Receive  slips, etc. from overseas subsidiaries, Bookkeeping service using the cloud-based accounting system, Report / advice to overseas subsidiaries Parent company: Understand details of overseas operation from the system Domestic FC offices: Receiving and organizing the report prepared by overseas FC offices, Report / advice to the Parent company

Case4 Support for global internal audit

Provide support locally for internal audit program for a major global company

Fair Consulting Group provided internal audit of overseas subsidiaries in over 20 countries worldwide in two-year cycle. FCG’s consultants in neighboring offices were in charge of each audit for overseas subsidiaries, and prepared an internal audit report in Japanese.
In order to keep the internal audit in each country at the same level, Fair Consulting Tokyo Office controlled the quality of the audits.

Fair Consulting Tokyo Office Control audit quality and give instructions to each office. Maintain internal audit procedure manuals, request lists and internal audit report templates. FCG’s consultants in neighboring offices were in charge of each audit for overseas subsidiaries. FCG’s German Office handled the audits for subsidiaries in the EU countries. By FCG’s neighboring offices handling the audit locally, cost for travelling time of consultants and transportation expenses can be reduced and highly-efficient program can be achieved. By FCG’s Japanese offices communicating with the client’s head office in Japan and controlling the quality of each audit, a stable audit quality can be maintained.

Case5 Rearrangement of group capital scheme and reorganization procedures

A global restructuring project accompanying business integration of Japanese companies

In line with the integration of domestic businesses in Japan, the group's capital scheme was strategically reorganized from the perspective of international tax (global tax planning), cash management (global cash management) and foreign investment regulations.
After the reorganization of the group’s capital scheme initiated by the Japanese headquarter, Fair Consulting Group supported the implementation of the capital restructuring procedures (share transfer, merger and liquidation) comprehensively in each country.

Phase1Defining the global restructuring

Based on the business integration between Japanese companies, the optimal post-integration global organization scheme was defined from the perspective of international taxation, etc.

Phase2Implementation of restructuring procedures (share transfer and liquidation)

The restructuring procedures are implemented in each country based on the definition as performed in Phase 1.

  1. ①Share transfer setting a Singapore company as an ASEAN regional headquarter
  2. ①Successively liquidated China company and Hong Kong company
Domestic and overseas business management system, Establishing regional headquarters / intermediate holding companies, Consideration of optimal capital scheme, Narrowing down the target ASEAN countries

Case6 Documentation in BEPS project

A BEPS documentation project in a middle-sized manufacturer

BEPS project was launched as a result of the introduction in Indonesia in 2017, the master file and local file were prepared. Following the documentation performed in Indonesia, supporting the documentation in Vietnam was also provided in 2018.
Fair consulting group established the project management team and international tax advisory team in Tokyo, and assisted the project with the teams located in each country in coordinating across the world.

Phase1 :BEPS support in Indonesia Targeting on Indonesia, prepare the master file and local file in Japanese language then translate them into English and Indonesian Phase2 :BEPS support in Vietnam Amend the Indonesian master file to be applicable under the Vietnamese legislation (amendment, translation) Prepare the local file in Japanese language then translate it into English and Vietnamese Phase3 onwards : BEPS support in other countries/ Follow up on updating existing documentation Follow up on updating existing documentation in each country while providing support in the countries where BEPS is to be introduced