Entering Equity Holdings Adjustment Data 

Use

You can enter additional financial data for equity holdings adjustments to adjust the investment valuations of consolidation units that are consolidated using the equity method.

Alternatively, you can read equity holdings adjustment data from reported equity data.

Prerequisites

·       You have assigned the equity method accounting technique to each of the consolidation units concerned. (You do this in the process view of the workbench under Master Data ® Consolidation Units ® Accounting Techniques.)

·       You have activated the equity method in Customizing for consolidation of investments under System Utilization.

·       You have determined that equity holdings adjustment data is read from additional financial data. (This is done in C/I Customizing under Location of Values. In the process view of the workbench, choose Consolidation Functions ® Consolidation of Investments ® Settings ® Location of Values, and go to the General tab page.)

On the Equity Holdings Adjustments tab page, you have specified the items and subassignments needed for reporting equity holdings adjustments.

·       The other prerequisites are listed in section Manual Entry of Additional Financial Data.

Procedure

...

      1.      First, follow the procedure described for the entry of investment data or equity data.

      2.      Now, enter the data for each scope of reported data.

If the equity method is used and you perform a step acquisition at a later date, the system will calculate a new goodwill entry. In this case, a background process writes a new equity entry in the table of additional financial data as an aid for the correct calculation of goodwill.