Scope of Consolidation Cube

Return to Financial Consolidation Model Overview.

The Scope of Consolidation cube 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 Time and Version element. Other information remains static regardless of time and version. This information is contained in the Legal Entity, Partner Entity and Scope dimensions.

The dimensions of the Scope of Consolidation cube are described below:

Dimension Description

Version The Version dimension separates actual figures from planning figures. See full article.

Month_YTD The Month_YTD dimension holds aggregated values from the beginning of the calendar or fiscal year to the end of a month. See full article.

Scope The Scope dimension contains all target elements for financial consolidation in a flat list. See full article.

Legal Entity Elements in the Legal Entity dimension represent the companies within a group, i.e. those companies for which you need a separate financial statement. See full article.

Partner Entity Elements in the Partner Entity dimension represent business relationships with other companies in a group. See full article.

Scope of Consolidation_Measure dimension

Data Validations, Data Validation Errors, and Data Validation Warnings hierarchies are configurable. See Balance Sheet_Measure Dimension article for more information.

Elements Description

Total Ownership Rate

The Total Ownership rate is an aggregation of the direct and indirect ownership rates.

Direct Ownership Rate: always stored on the ~ element of the scope dimension. Investor corresponds to the Legal Entity dimension and the investee corresponds to the Partner Entity dimension. For other elements of the scope dimension the values entered on the ~ element is duplicated by a rule.
Indirect Ownership Rate: specific to the elements of the Scope dimension. Holding corresponds to the legal entity dimension and the investee corresponds to the partner entity dimension.

Meaningful totals appear only on the specific elements of the scope dimension.

Holding

Calculation of 1.0 (100%) for the legal entity if it is the holding company of the current scope.

Consolidation Rate

Aggregation of the total ownership rate and the holding.

Consolidation Method

String element that contains one of the following values:

F: Full Consolidation (to be used for subsidiaries).

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 (to be used for associates and joint ventures)

N: Not Consolidated (to be used for investments without significant influence).

This measure is stored on the specific elements of the scope dimension. The Total Group element is the Legal Entity dimension and the Partner Entity is the investee.

Combined Consolidation Method

	Consolidation Method of the partner entity
Consolidation Method of the partner entity	F	P	E	N
F - Full Consolidation	F	P	E	N
P - Proportional Consolidation	P	P	E	N
E - Equity Consolidation	E	E	E	N
N - Not Consolidated	N	N	N	N

Tax Rate Represents the total tax obligations for the company. The Scope and Partner Entity are ~. The Legal Entity is the company.

Profit Margin Measure of a company's earnings relative to its revenue

Data Validations List of elements that contain the data validations for Balance sheet cube.

Data Validation Errors List of elements that contain the number of data validation errors for each data validation element for Balance sheet cube.

Data Validation Warnings List of elements that contain the number of data validation warnings for each data validation element for Balance sheet cube.

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 of creating 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 11 and 17 are the respective holdings of the AMER and 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 (11, 17, 13, and 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 (12, 15, and 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 shareholders do not always have full control and minority shareholders 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.

Updated September 25, 2024