consolidation chart of accounts

Consolidation (EC-CS)

A consolidation chart of accounts is a systematic classification of financial statement items that serve a common purpose. The classification is marked by either corporate external and/or internal requirements. For instance, you could have one consolidation chart of accounts for the purpose of generating financial statements to meet the requirements of statutory authorities, and you could have another consolidation chart of accounts to accommodate corporate-internal requirements for contribution margin accounting.

You can have multiple consolidation charts of accounts within a single dimension. This enables you to generate multiple financial statements at the same time in order to meet various requirements. Example: a single dimension for legal consolidations could use one consolidation chart of accounts for generating consolidated financial statements according to the 4th/7th EU directive, and another consolidation chart of accounts for generating consolidated financial statements according to US GAAP.