Specifications In the C/I Method Overview Screen (SAP Library

Specifications In the C/I Method Overview Screen

You can maintain basic method characteristics on the consolidation of investments overview screen:

Specify the type and variant for the C/I method.

Determine how to deal with any positive differential that results from eliminating the investment book values with the relevant equity values. The options are

an activation of the differential as goodwill, and the amortization of this value in the same period and/or the subsequent periods
a direct elimination of the differential with a stockholder equity item
an activation of the differential as goodwill, and the proportional elimination with a stockholder equity item
the disclosure on a statistical FS item when using the equity method with the book value method

Determine whether, and how to eliminate any existing hidden reserves (FVAs). In FI-LC the elimination can be carried out as follows:

proportionally

The system calculates a percentage rate to eliminate all existing hidden reserves at approximately the same amount.

by priority

The priorities of the hidden reserves must be defined manually in the table of hidden reserves.

completely

Take into account that a formerly asset-side differential can turn into a liability-side differential as a consequence of a complete elimination of hidden reserves.

You need to determine the calculation base which specifies which investment and equity values will be included in the consolidation of investments. The following options exist:

local values
corporate values
corporate values + consolidation entries

Please note that this setting is only effective for data of the changes in investments and the changes in investee equity which are automatically read from the database.

The calculation base also controls which values in the system will be used when calculating minority interest in annual net income (see also Minority Interest in Annual Net Income).

This setting can, in particular, control whether to include the adjustments to net income, caused by standardizing and consolidation entries, in the consolidation of investments. This would enable external stockholders to participate also.

After you have completely defined the method, including the detail screens, the method should be checked via the step Method ® Validation check. Various logic rules are called up by the system. For example, the system ensures that no totals items for postings were specified, or that the FS item types correspond to their respective assignments. The system displays the result of the validation under control parameters.