Minority Interest in Investments and Equity
If the group share in an internal trading partner is less than 100 %, minority interest must usually be taken into account in the consolidation of investments. For first consolidation, the minority interest in book values of investments and equity values is transferred to FS items for minority interest before the group-related book values of investments and the equity values are eliminated. During subsequent consolidation, the changes in equity values (generally the change in the retained earnings) allotted to minority interest is transferred to the minority interest item.
Please note that minority interest in investments occurs on the basis of calculated group shares in the case of simultaneous consolidation. Minority interest in investments does not occur in step consolidation since the individual hierarchy levels are consolidated step-by-step with direct shares. (See also the explanations on
Step Consolidation .)You can transfer minority interest either
In the first case, define the relevant investment items and the equity items as initial items in the Minority interest detail screen and assign a minority interest item to each. In the second case, only specify one minority interest item as a default item to which a transfer posting is made from the relevant investment items and equity items.
A combination of both procedures is also possible. Postings are made to the default item if no special minority interest item is specified.
The assignments are stored as selected items under the key MIN.
Furthermore, on the Minority interest detail screen you must define the minority interest item to which minority interest in eliminated hidden reserves (FVAs) is posted when applying the revaluation method. This item is stored as a selected item under the key MIR. See also the discussion on
Hidden Reserves.The following illustration shows an example of transferring minority interest and the elimination of the book values of investments and the equity values.
