The voice of our experts
Testimonial Julien Herouard, Consolidation & Reporting Manager at Primexis

In this interview, Julien Herouard, Consolidation & Reporting Manager at Primexis, shares his expertise regarding outsourcing assignments for the consolidation function and IFRS and regulatory accounting consulting. He discusses the assignments he has carried out with French and international groups and the major challenges the clients encountered, notably the transition from French standards to IFRS.

Can you introduce yourself?

I am Julien Herouard, a Consolidation & Reporting Manager at Primexis. I joined the firm in 2015, and I am specialized in consolidation outsourcing assignments and accounting advisory services. I handle consolidation, both French Accounting Standards Authority (ANC) No. 2020-01 and IFRS.

What type of assignments do you work on?

I recently assisted a French engineering group with around 60 subsidiaries in a new LBO (Leverage Buy Out) under the ATAD scheme. First, I calculated the goodwill of the acquisition holding company. Second, I estimated the value of the equity and aggregate assets and liabilities at the end of the first fiscal year. And third, I compiled various debt ratios to estimate the value of net financial expenses to be deducted in the future.

What are the main challenges for clients?

The main challenges for our clients? I can think of 4. The first challenge is current standards and regulations.

We are currently witnessing a major project, Pillar 2, which will impact 50,000 companies in Europe. It will be necessary to work with in-house tax teams and the consolidator who has the data. A second challenge relates to all aspects of corporate restructuring. These include acquisitions and transfers and their impact on the accounts, for example, IFRS 5. A third challenge is establishing new regulatory reporting. I can mention XBRL (eXtended Business Reporting Language) and CSRD reporting on green taxonomy. And a fourth challenge that we were called upon to meet is the transition from French standards to IFRS or first-time consolidation projects.

How is a mission organized?

Primexis assisted a major French player in the infrastructure and environment sector. We divided the assignment into 3 phases:

• An initial diagnostic phase in which we studied the IFRS restatements that would have an impact in this sector of activity. 
• A second phase, more of an FTA (First Time Application). We calculated the impacts between the 2 standards and also adapted the reporting tool.
• And a third phase, an operational phase, in which we trained the in-house teams and also wrote a consolidation procedure book.

Can you tell us about an experience that particularly stood out to you?

One of my most memorable experiences was working with a mid-cap French company in the industrial sector. The entire finance department, including the CFO, left close to the new tax ruling. They had been under a lot of pressure with regard to financial communications and new investors.

Primexis was a long-standing partner of the group, so I stepped in with the help our of accounting department and with the help of an interim CFO. During this assignment, I played two roles: FP&A controller, where I was in charge of monthly reporting management and also supervised statutory consolidation.

As a result, I also had to set up reporting tables to calculate covenant ratios for new lenders. The assignment went very well, and we continue to work with the group on a frequent basis.

What does the “IFRS & regulatory accounting advisory” service offer?

Primexis works with listed or unlisted groups of all sizes and in any sector of activity. Our clients include family groups, investment funds, and also groups resulting from LBOs or spin offs. We have a team of 50 experts recognized in the Consolidation and Reporting market. We can help you meet organizational challenges and develop decision-making tools.

Do you need help implementing new IFRS accounting standards? Would you like to set up a new Pillar 2 reporting system – CBCR, Taxonomy, or CSRD? Primexis can guide and assist you with all changes in standards and regulations. To learn more about our IFRS and Regulatory Accounting Advisory Services

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The full testimonial is available on Primexis’ Youtube channel.