Scope of Consolidationcube contains data concerning the total group and subgroups should they exist. This includes the ownership rates, consolidation method and tax rates. These are dynamic values that may change along with their
Versionelement. Other information remains static regardless of time and version. This information is contained in the the
The dimensions of the Scope of Consolidation cube are described below:
|Legal Entity||Elements in the
|Partner Entity||Elements in the
|Scope of Consolidation_Measure dimension||
|Tax Rate||Represents the total tax obligations for the company. The
The diagram below shows the sample data for the Financial consolidation model, depicting the various qualities and relations between the business entities falling within its scope:
The uppermost box represents the total group holding: a parent company that maintains control over multiple business entities and is in charge to create the consolidated financial statement for the group. In this case, the legal entity
90 (Bikers Best Corp) is the holding of the
Total Group. Business entities
17 are the respective holdings of of the
EU subgroups. The holding is stored in the
Holding Entity attribute in the
Legal Entity dimension on the total group or subgroup elements. The second row from the top (
16) represents the business entities in direct ownership with the total group holding. These entities are stored in the
Direct Ownership Rate measure. The ones below this (
14) are in indirect ownership, which means they are stored in the
Indirect Ownership Rate measure. The diagram also shows the various relations the business entities have with one another:
- Subsidiary: investor has full control of the company (
90[Bikers Best Corp] →
11[Best Bicycle USA]).
- Associate: investor has minor, but significant control of the company (
12[Bikers Velo] →
15[Canadian Bikes Best]).
- Joint venture: two or more investors share equal control of a company (
90[Bikers Best Corp] →
16[Bikers Best Nippon]—a 50% joint venture with two equal control rates).
Please note: ownership rate does not always correspond with rate of control. Majority share holders do not always have full control and minority share holders may have more control than their ownership rate suggests.
Of course, this diagram is only an example and your financial consolidation hierarchy may look different.