The consolidation scope is the set of entities that enter a group's consolidated financial statements and the method by which each one is integrated, according to the control the parent exercises over it.
What it includes
The parent and every entity it controls (full consolidation, at 100% with minority interests), those it manages jointly with another partner (proportional consolidation or equity method) and those it influences without controlling (equity method). In management consolidation, the group can define several scopes: statutory, by region or by business line.
Example with numbers
A group has the parent, three 100% subsidiaries, one at 60% and one investee at 25%. Full consolidation scope: 5 entities. The 60% one enters with 100% of its figures and 40% minority interest. The 25% one enters only as its share of profit and adds no revenue to the consolidation. If its revenue is 400,000, the consolidation does not include it.
How Fibady does it
Entities connect from their ERP and are grouped into whatever scope the group defines, with subgroups by region or business. The same set of entities can be viewed in different scopes without duplicating data, and eliminations are applied within each scope.