Full consolidation is the method applied to entities under the exclusive control of the parent. It integrates 100 percent of the subsidiary's assets, liabilities, income and expenses into the group accounts, line by line, regardless of the percentage actually held. The share belonging to other shareholders is then isolated on a separate line, minority interests, in both equity and the result.
The logic is that control, not ownership, determines what the group presents. If the parent holds 70 percent of a subsidiary and controls it exclusively, the group commands 100 percent of that entity's revenue and 100 percent of its assets. It shows them in full, then discloses that 30 percent of the equity and the result belong to someone else.
It is the default method of the consolidation scope, and by volume it carries most of the elimination workload. Because every line of the subsidiary is integrated, every internal flow between that subsidiary and the rest of the group appears twice in the aggregate and must be removed in full through an intercompany elimination: the whole reciprocal balance, the whole internal revenue, the whole internal margin.
Full integration means full exposure to bad data. Where an entity is equity accounted, a data error affects one line. Where it is fully consolidated, the error propagates into every aggregate the group reports. An unreconciled 1 500 euro gap does not stay small: it inflates revenue and costs simultaneously and distorts group margin.
This is why Phacet places the control before the aggregation rather than after it. The intercompany flow reconciliation agent validates reciprocal positions across every fully consolidated entity and surfaces gaps as exceptions before packages are submitted, each documented with a traceable audit trail.
