Group process

The scope of consolidation is a group of entities that are included in the consolidated financial statements that are prepared by the parent entity.

The group's financial statements are statements in which assets, liabilities, equity, income, expenses and cash flows of the parent and its subsidiaries are presented as those of a single economic entity. The consolidated financial statements do not include the equity interests in these entities and the investment income that is received by the parent. Individual assets and liabilities in the consolidated statement of the financial position sheet and individual income and expenses are recognized in the consolidated statement of comprehensive income. As a result, the parent entity and its subsidiaries are included in the scope of consolidation.

Because joint ventures may be included in the consolidated financial statements according to the At Equity valuation, they may also be included in the consolidated group.

This high-level procedure describes how to prepare a group statement:

  1. Set up the group parameters with required data.
  2. If the group currency has changed compared to the last period, adjust the rate with which all past data is calculated.
  3. Define the entity ownership structure. The ownership structure represents the relationships between the owner entity and the owned entities.
  4. With the Sum Up Balance function, transfer the data from the group-contributing entities to the group context to calculate the group effective ownership. This calculation is taken into account by consolidation processes.
  5. Run the consolidation processes to create journals. You can also post journals manually.
  6. If the group financial data is correct, prepare the cash flow statement for the group.