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// definition

Consolidation perimeter

The boundary of group accounts

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Private credit & markets

Short definition

The accounting boundary within which a parent combines, line by line, the assets, liabilities, income and expenses of entities it controls. Deconsolidation does not make an entity disappear: stakes, commitments and related-party transactions may remain disclosed as investments or separate notes.

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Intuition

Consolidation is a binary accounting boundary. Economic influence can continue outside it through capital, contracts, mandates and governance.

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