You can build the holding structure of a consolidation type on the Consolidation structure tab. The structure that is defined here, of a holding with subsidiaries, will be used when consolidating the profit and loss accounts and/or other accounts of the subsidiaries. Register the details on the Consolidation structure details tab.
If a company with subsidiaries is keeping its own accounts, create a consolidation holding without accounts and place it at the top of the structure. This ensures that the results of the holding will be available separate from the results of its subsidiaries.
A holding that keeps its own accounts has a 75% interest in subsidiary 1, and a 20% interest in subsidiary 2. In order to see the results of this holding separately from the results of the subsidiaries, a consolidation holding without accounts has been added above the holding.
Independent holdings that do not keep their own accounts each have their own subsidiaries. Holding 1 has a 75% interest in subsidiary 1 and a 30% interest in subsidiary 2. Holding 2 has a 45% interest in subsidiary 3 and a 45% interest in subsidiary 4. Create a separate consolidation type for each holding.
The International Holding World Wide has a European branch and an American branch. Holding Europe consists of Netherlands BV, Belgium NV, UK Ltd and Germany GmbH. The companies Canada Corp. and USA Corp. come under the umbrella of North America Holding. All holdings have a 100% interest in their subsidiaries and are not keeping their own accounts.
As the turnover of the European branch is significantly higher than that of the US branch, the board of International Holding World Wide would like to see a monthly financial report of Holding Europe and its subsidiaries. It wants to receive a quarterly financial report of North America Holding including Canada Corp. and USA Corp, and it wants to see the annual results of all companies.
Consolidation type 1, used for monthly reporting
Description
Company
Participation %
Consolidation method
Holding Europe
ADM002
100%
Netherlands BV
ADM011
100%
Ledger
Belgium NV
ADM012
100%
Ledger
UK Ltd
ADM013
100%
Ledger
Germany GmbH
ADM014
100%
Ledger
Consolidation type 2, used for quarterly reporting
Description
Company
Participation %
Consolidation method
North America Holding
ADM003
100%
Canada Corp.
ADM015
100%
Ledger
USA Corp.
ADM016
100%
Ledger
Consolidation type 3, used for annual reporting
Description
Company
Participation %
Consolidation method
International Holding World Wide
ADM001
100%
Holding Europe
ADM002
100%
Ledger
North America Holding
ADM003
100%
Ledger
Note: Consolidation types 1 and 2 must be applied before the annual report based on consolidation type 3 can be generated.
International holding structure