Consolidated Financial Reporting for a Multi-Entity Healthcare Group

A privately owned Namibian healthcare group operating two medical clinics in Windhoek, one in Swakopmund, a pharmacy chain with four outlets, and a medical supplies distribution entity: seven legal entities in total.

The group had never prepared consolidated financial statements. Each entity had its own accountant producing standalone accounts in different formats and on different accounting bases, making it impossible for shareholders to assess the overall financial position. A private equity investor had indicated interest and required consolidated IFRS-compliant financial statements covering two years before making a binding offer.

We standardised the accounting policies across all seven entities, aligned the financial year-ends, and prepared consolidated financial statements for two years. We identified and eliminated all intercompany transactions, including intercompany loans, management fee charges, and stock transfers between the pharmacy and distribution entities. We prepared the consolidation workings and a full set of notes covering segment information, related party disclosures, and property, plant and equipment movements.

Two years of consolidated IFRS financial statements prepared. Intercompany eliminations completed and documented. The private equity investor received the required financial package and proceeded to the due diligence phase. The group has appointed us as its ongoing group reporting accountants.