Consolidation Chart of Accounts 
Consolidation Chart of Accounts
Definition
A systemic index for structuring financial statement items.
Use
The use of a consolidation chart of accounts in the data model is optional.
There can be no characteristic consolidation chart of accounts unless the characteristics with the role financial statement item are compounded.
If you do not want to use consolidation charts of accounts you can instead use multiple hierarchies of financial statement items.
Structure
The consolidation chart of accounts is not dependent on any data except the client.
By contrast, the financial statement items and breakdown categories are dependent on the consolidation chart of accounts.
There can be one consolidation chart of accounts per consolidation area. The independent characteristic consolidation chart of accounts must be uniquely defined in the consolidation area.
In the consolidation chart of accounts, you arrange the items into FS item hierarchies as required for the accounting principles used. For example, you define a consolidation chart of accounts with an item hierarchy for balance sheet items and an item hierarchy for income statement items.
Example
Examples of consolidation charts of accounts
|
Legal Framework |
Industry |
P&L Accounting Method |
Appropriation of Retained Earnings |
|
US GAAP |
Manufacturing |
Cost of Sales |
ARE in Balance Sheet |
|
EU Directives |
Manufacturing |
Period Accounting |
ARE in Income Statement |
|
EU Directives |
Manufacturing |
Period Accounting |
ARE in Balance Sheet |
|
EU Directives |
Banking |
ARE in Income Statement |
|
|
Japanese GAAP |
Manufacturing |
Cost of Sales |
ARE in Balance Sheet |