Ownership concepts

A group may consist of several subgroups, which can result in a complex ownership structure.

This diagram shows an example of an ownership structure that contains subgroups:

Each group and subgroup can be consolidated independently. This is called parallel consolidation. The disadvantage of parallel consolidation is that an already audited subgroup may be part of a higher-level group within a structure. In this case, the subgroup's effect in the higher-level group must be filtered out and audited again.

To minimize the complexity of analyzing the effect of subgroups, you can use the Use Subgroup Consolidation feature, which transfers already consolidated subgroups to a dummy entity. The dummy entity is parameterized in the higher-level group.

You can choose parallel consolidation or subgroup consolidation of the financial statements. Both concepts differ only in the complexity of analyzing the effect of subgroups. The results of both are the same. In each of those concepts, parameterization is done differently. Correct parameterization is required to create ownership structures and consolidated groups and subgroups.