The following tables are available for entering activity data for the consolidation of investments:

• Changes in investments

• Changes in investee equity

• Equity holdings adjustments

• Hidden reserves (fair value adjustments)

• Eliminated hidden reserves

The data for the investments of the parent companies in subsidiaries, joint venture companies and associated companies must be entered here.

• For every business activity, a short description can be defined.

• You must specify the investment items to be used for the consolidation of investments. These can be limited to one transaction type.
  The transaction type must be specified, providing that a breakdown by transaction types was determined within FS Item Maintenance. The transaction type must be identical to that of the investment item in the balance sheet form or the asset form because an eliminating entry is made to this transaction type.

• You must specify the percentage rate of investment.

• For information purposes, you can mark a particular investment as a controlling investment.

• The investment book value must be specified in the local currency of the parent company and in group currency. If only the local value is specified, the system translates the value either using an explicitly specified exchange rate for currency translation or using an exchange rate from the exchange rate table, with the specified exchange rate indicator.

• If you have already entered changes in investments data in the totals table by means of the entry function, and now want to enter it in the Changes in Investments table, you can do the following:

• When a transfer During a transfer, the transfer company must be specified. The transfer company states which internal trading partner purchased an investment or to which internal trading partner an investment was sold. For a transfer divestiture, the company ID of the new parent company must be specified. For a transfer acquisition, the company ID of the old parent company must be specified.

The equity values which are included in the consolidation of investments must be entered here for all companies of the subgroup. For the highest parent company, equity values are generally also entered for analysis purposes.

• Entries must be made for all equity items that must be included in the consolidation of investments. The equity items can be limited to one transaction type.

• You should also enter the assets items "Deficit not covered by equity" and "Non-subscribed capital stock" in the table, since they are taken into account when the system calculates minority interest.

• You must set the indicator E or F for each activity:

• Indicator E is set for first consolidation or a similar activity, such as an increase in capitalization or a subsequent acquisition. In these activities, capital usually flows in from external sources and must be completely eliminated.
• Indicator F is set for subsequent consolidation. When equity changes, minority interest is calculated and transferred to the corresponding item.

• Enter the sign in each record. Specify a positive (plus) sign for the changes to equity items when equity increases within the current year. Conversely, specify a negative (minus) sign for decreases in equity. The entry of values in the financial reporting table is therefore independent of the plus/minus sign.

• When entering the amount in local currency, always enter the change in value of the equity item that occurred since the previous elimination. The same applies to the amount in group currency.

If appropriations are stated on the balance sheet, note the following when making entries to the equity item "Unappropriated retained earnings":
The item’s balance results from carrying forward from the previous year the items Annual net income, "Unappropriated retained earnings", "Transfers to/Deductions from appropriations", and "Distributions". Therefore, in general, you should not enter a value for the equity item "Unappropriated retained earnings" in the Changes in Investee Equity table. You should merely post the differential whenever the individual financial statement data produces a different value for the item.

• The explanations listed under the Changes in Investments table concerning the database indicator and the automatic loading of data from the database apply here as well.

The values for the net profit achieved, the distributions of dividends as well as any currency differences are stored in this table.

You can assign any hidden reserves (fair value adjustments) to assets in this table.

• To make the assignment, specify the corresponding FS items of the assets. You can specify the respective balance sheet item in more detail by means of subitems.

• The existing hidden reserves are entered in full, both in local currency and in group currency. If only the local value is specified, the system translates the value either using an explicitly-entered exchange rate for currency translation or using the Exchange Rate table with the specified exchange rate indicator.

• For depreciable fixed assets, you must store the following data for amortizing hidden reserves.

• FS item for amortization on the income statement
• method of amortization: straight-line or declining-balance
• the amortization rate as well as the duration of amortization (when using the declining-balance method)
• the duration of amortization in years and months (when using the straight-line method)
• number of the amortization months in the first year of amortization

• You must specify the priority if the elimination of hidden reserves is "priority-controlled". The elimination starts with the highest priority level.

The system computes the elimination of hidden reserves and records it in the table. It also calculates the amortization of the eliminated hidden reserves. The data of the Hidden Reserves table and the specifications for the elimination in the definition of the C/I methods are the basis.

You can manually adjust the default value that is set for the amortization of each period that follows.

One could basically state that hidden reserves must be dealt with exactly the same way as the assets disclosed in individual financial statements. If because of this, the following activities must be taken into consideration, you must manually enter them in the table.:

• special amortization

• write-ups

• partial or total divestitures

Goodwill resulting from consolidation of investments is also recorded in the table by the system, assuming it is not directly cleared against a stockholders’ equity item. It is posted against the FS item that has been specified as the APC item in C/I Method Definition, with the account assignment "GOOD". The system calculates the amortization of goodwill and records it in the table. Manual adjustments can be made.