Rule ID: DQC.US.0245.10947
Status: Public Review
Public Review: August 15 - September 30, 2026

Purpose:

The purpose of Rule DQC.US.0245 is to ensure that filers do not use the ConsolidatedEntitiesAxis in the statement section of a filing. The ConsolidatedEntitiesAxis is intended to be used for values in a consolidating schedule to identify and disaggregate financial data for specific entities within a consolidated group. It should not be used to identify legal entities in the financial statements. Filers should use LegalEntityAxis for identifying legal entities in the statement section.

Conditions:

Assertion 10947 fires when all of the following are true:

1. The filing contains presentation networks in the statement section (using $STATEMENT_PRES_NETWORKS).
2. One or more of those statement networks contain the ConsolidatedEntitiesAxis (srt:ConsolidatedEntitiesAxis) in their parent-child relationships.

The SEC has observed issuers improperly using ConsolidatedEntitiesAxis to tag financial statements presented separately from the issuer's consolidated or combined financial statements. For example:

• A trust included financial statements of both the trust and an operating entity, tagging the operating entity's statements with ConsolidatedEntitiesAxis instead of LegalEntityAxis.
• A trust with multiple series of units tagged each series' financial statements with ConsolidatedEntitiesAxis, when each series should have been treated as a separate reporting entity using LegalEntityAxis.

Additionally, ConsolidatedEntitiesAxis with AffiliatedEntityMember should not be used for receivables from affiliates or investments in related parties. Instead, RelatedAndNonrelatedPartiesAxis with AffiliatedEntityMember should be used.

The ConsolidatedEntitiesAxis is designed for consolidating schedules where disaggregation of entities within a consolidated group provides analytical value. Using it in the statement section misrepresents the nature of the data and confuses data consumers.

The filer has reported Consolidated Entities [Axis] in the statement section of the filing in the role [Statement - Balance Sheet]. The Consolidated Entities [Axis] is intended to be used for the values in a consolidating schedule and should not be used to identify legal entities in the statement section of the filing. The filer should use the Legal Entity [Axis] to identify legal entities in the statement section of the filing and not use the Consolidated Entities [Axis] in this section of the filing.

Rule Element Id: 10947
Rule version: 29.0.0RC1

The rule element ID is used to identify unique elements or combinations of elements tested in the rule.

Assertion 10947 iterates over all statement presentation networks ($STATEMENT_PRES_NETWORKS). For each network, it retrieves the concept names used in the parent-child relationships and checks whether srt:ConsolidatedEntitiesAxis is present. If the axis is found in any statement network, the assertion fires.

Filers should:

• Remove ConsolidatedEntitiesAxis from statement section networks and use LegalEntityAxis instead when identifying legal entities, or
• If the data represents a consolidating schedule, move the presentation to a note network rather than a statement network.

The rule exists in the 2024, 2025, and 2026 US GAAP taxonomy versions.

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