P-GAAP
Use
When a company takes over another company (affiliated companies; holding > 50%), then the P-GAAP accounting rules apply in the consolidated financial statements.
The company that was taken over must retain the historical key figures (= Historical GAAP) (acquisition value, total profit, boo value,…) and the P-GAAP key figures (acquisition value, total profit, book value,…) for the securities in the position.
The realization of the P-GAAP requirements in position management occurs in a valuation area using the following position components for value adjustments:
1025 Gains value adjustment
(VAD gains)
= amount by which the historical OCI gains must be adjusted by in order to get the P-GAAP value.
1026
losses value adjustment (VAD losses)
= amount by which the historical OCI losses must be adjusted by in order to get the P-GAAP value.
1027
original value adjustment
= original value adjustment of value adjustment amount only for reporting.
It is filled with the old data transfer and only adjusted with position changes proportionately.
Generally the following applies:
P-GAAP - purchase value |
= H-GAAP- purchase value + VAD |
P-GAAP-OCI gains |
= H-GAAP-OCI gains - VAD gains |
P-GAAP-OCI losses |
= H-GAAP-OCI losses - VAD losses |
These position components are available for the following position management categories:
001 Securities/loans/money market without index-linked bonds
008
Securities/Loans with Installment Repayment (without Index-Linked Bonds)
Example
The company Y (subsidiary) has the following position in the holding category
Available for Sale.
Acquisition value |
100 € |
OCI (gains not affecting profit) |
20 € |
Book value |
120 € |
Company X (parent) takes over company Y on 01.01.07. The market value of the position on the takeover date is 120 €.
Company Y must also retain the following key figures (holding category
Available for Sale
).
Acquisition value |
120 € |
OCI (gains not affecting profit) |
0 € |
Book value |
120 € |
The following values result for the position components:
Position component |
Values |
|---|---|
Acquisition value |
100 |
OCI (gains not affecting profit) |
20 |
Gains value adjustment |
20 |
Original value adjustment |
20 |
Book value |
120 |
Calculation of P-GAAP values: |
|
Acquisition value P-GAAP |
= Acquisition value + VAD = 120 |
Book value P-GAAP |
= Acquisition value P-GAAP = 120 |
Integration
You can use the function for the following product categories:
Stocks (010)
Investment certificates (020)
Bonds (040)
Bonds with installment repayment (042)
Shareholdings (160)
The position components
Value adjustment gains and value adjustment losses
can be used by the consolidation solutions Consolidation (EC-CS) or Business Consolidation (SEM-BCS) .
Prerequisites
In Customizing under Assign Update Types for Derived Business Transactions you must assign the necessary update types for mapping P-GAAP Accounting on the tab Value Adjustment .
You must enter the initial values for the new position components for the value adjustment (
value adjustment gains, value adjustment losses and original value adjustment
) using the function Old data transfer .In Customizing under
Define Amortization Procedure
, you should set the flagAmortization: Value Adjustment
for monetary positions.
Features
The P-GAAP positions are integrated in position management. The adjustment of the position components occurs automatically through the derived business transactions when you execute the functions:
Calculation of realized gains and losses with Intragroup trading
The corresponding proportion of VAD components of the selling company is transferred to the company doing the takeover.
The adjustment of the position components for adjustment must be executed accordingly.
Position Components for Adjustments with Transfer Postings
With all transfer business transactions (securities account transfer, portfolio transfer, valuation class transfer, corporate actions, exercise of rights), the position components for adjustment are transferred as are all other position components.
The position components are available for your individual reporting in logical databases FTI_TR_POSITIONS and FTI_TR_PERIODS .
Activities
Make the required settings in Customizing.
Calculate the initial values of the position components for adjustment out of the SAP system.
Bring the initial values of the position components for adjustment for all existing positions into the system using function old data transfer .
If you manage the positions as usual, the position components for adjustment are adjusted as described below under features.
Further Notes
The new position components for adjustment are also available in function Initialization .
If you no longer want to use the function, you can also set up an additional valuation area to fulfill the P-GAAP requirements.
Example:
Company Y creates an additional valuation area and reports the data of this new valuation area to the group.
Holding Category: Available for Sale
Company Y
Acquisition value
OCI
Book value
Market value
Valuation area 1:H-GAAP
100
20
120
120
Valuation area 2:P-GAAP
120
0
120
120
Holding Category: Held to Maturity
Company 1
Acquisition value
Amortized acquisition value
Book value
Market value
Valuation area 1:H-GAAP
98
99
99
102
Valuation area 2:P-GAAP
102
102*
102
102
* follows the rules of the position management procedure