Definition for : Scope of consolidation
The scope of Consolidation is the list of companies to be included in the preparation of Consolidated accounts. The scope of Consolidation includes the Parent company and the companies in which the Parent company holds directly or indirectly at least 20% of the voting rights. To determine the scope of Consolidation, one needs to establish the Level of control exercised by the Parent company over each of the companies in which it owns shares. See also pro forma statements.
(See Chapter 6 Getting to grips with consolidated accounts of the Vernimmen)
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