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Accounting & BookkeepingAccounting & Financial Management3MediumAccountant$ implied

Consolidation entry under ASC 805 for a pre-existing relationship between parent and subsidiary does not balance, causing a 100-dollar plug that is not accounted for in goodwill calculation.

Existing accounting software and textbooks cover standard consolidation entries but do not clearly handle the mechanics of intercompany pre-existing relationships that are excluded from goodwill under ASC 805, leaving users to manually plug numbers without guidance.

Severity

3Medium

Willingness to Pay

implied

Added

Jun 25, 2026

Implied Software Gaps

Software that can model pre-existing intercompany relationships and balance consolidation entries automatically

App Concept

ConsolClear: ASC 805 Consolidation Wizard

A specialized add-on or standalone tool that guides accountants step-by-step through complex business combination consolidations, automatically handling pre-existing relationships, deferred taxes, and noncontrolling interests. It ensures entries balance and provide audit-ready working papers.

Key Features

Step-by-step consolidation wizard for acquisition accounting (ASC 805)
Automatic handling of pre-existing relationships, including intercompany advances, payables, and receivables
Built-in goodwill impairment testing and allocation
Export to major accounting software (QuickBooks, Xero, SAP) and Excel

Target Users: Corporate accountants and controllers at mid-to-large companies and CPA firms handling M&A transactions

Revenue Model: $99/month per user subscription or $999 one-time license fee

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