Scope of Consolidation Report

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Return to Financial Consolidation Overview

The Scope of Consolidation report shows business relations within the Scope of Consolidation cube. The Scope of Consolidation report allows you to view and customize these business relations based on the your individual financial consolidation. The upper two tables in the scope of consolidation report are scope neutral (their content stay the same regardless of scope), while the tables below them are scope specific (their content changes based on their specific scope).

Report Heading

The report heading updates dynamically as various reporting options are selected. Below it shows the scope for Actual, 2018-01_YTD.

The logo can be changed in Administration; see Configuring Design Elements for more on report design. You should select the base elements in the combo boxes below the report heading:

The Version dimension separates actual figures from planning figures, see full article. The Month_YTD dimension accumulates float values from the beginning of the calendar year to the current date, while respectively holding the final figure for stock values

Direct Ownership Rate

The rows and columns both display business entities. The rows show the entities in the role of investors; the columns show the entities in the role of investees. The intersecting cells show the relationship of the two business entities in terms of direct ownership.

The following diagram uses the sample data to explain different parts of the report:

In terms of direct business ownership, we can see that  90 (Bikers Best) has 100% direct ownership over business entities 11, 17, and 13, and 50% direct Ownership of 16 (Bikers Best Nippon). Read more about different business relations here. Business entity 17, in turns owns 80% of business entity 12.  This means the holding company 90 indirectly owns business entity 12 at a rate of 80%. You can read more about business relationships under the scope of consolidation here.

Tax Rate

The next table shows the tax rate for each business entity:

A 30% tax rate is given as an example for all entities above. It is important to note, however, that each cell containing a tax rate percentile is an independent input field. The key user inserts a figure estimating the tax withholdings for each business separately. These figures may vary from one business entity to the next and only serve as an approximation of the final taxes that will be withheld.

Total Group

The Total Group table depicts the full scope of consolidation. Click on the Holding cell to open the dropdown menu from which you can select the holding company.

The rows in the table shown above the holding correspond to the five measures of the scope dimension (read the details about them here). They are described below.

Measure Description Implementation
Direct Ownership Rate Percentage of business owned directly by the holding (read only). Any value stored in the Direct Ownership element of the Scope of Consolidation_measure dimension (numeric).
Indirect Ownership Rate Percentage of business owned indirectly, through other business relations Any value stored in the Indirect Ownership element of the Scope of Consolidation_measure dimension (numeric).
Total Ownership Rate Combined direct and indirect ownership rate (read only). The aggregation of the direct and indirect ownership values stored in the Scope of Consolidation_measure dimension (numeric).
Holding Only applies to the total holding company and is always 100% (read only) Value stored in the Holding Entity attribute of the Legal Entity dimension (string).
Consolidation Method

Signifies how a specific entity is included in the scope (read/write). Clicking the cell reveals a drop down menu with four options:

  • F: full consolidation (subsidiary)
  • P: Proportional Consolidation (figures proportional to the ownership rate, in accordance with the localized general accepted accounting standards or the international financial reporting standards)
  • E: Equity consolidation (associates and joint ventures)
  • N: Not consolidated (for investees without significant influence).
Value stored in the Consolidation Method element of the Scope of Consolidation_measure dimension (string).

Subgroup

The subgroup table(s) will follow the same principles of the Total Group with a more limited scope. You will therefore likely see a reduction in columns. The sample data depicted in the diagram have two subgroups AMER and EU. The table for AMER is shown below:

 

You can see that it corresponds with the diagram (Holding 11 with a 70% direct ownership of 15).

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