Calculating Group Shares
Simultaneous consolidation uses the so-called matrix procedure, in which group shares are calculated from the investment relationships of company pairs.
A’s ownership in B = 90%
B’s ownership in C = 80%
Hence, the group share in C = 0.9 * 80% = 72%
In Subgroup Maintenance, use Environment
® Group shares to access the function for calculating group shares for each subgroup. You can check the investments for company pairs at the beginning of the audit trail. The calculated group shares for each company are listed at the end, and will be displayed on the subgroup screen in a future release.You can perform a an alternative calculation of the group shares using the function Consolidation
® Cons. investments. ® Group shares in the Consolidation menu. With this function, you can request a printout of the iteration matrices. The detailed audit trail contains the calculation scheme. The product matrices of every iteration level are listed.Deviating shares
If you maintain deviating shares in the Changes in Investments table (see also
General Information on Table Maintenance) in addition to the overall percentage share of ownership in the investee, then the group share is also calculated for these (deviating) shares. The system proceeds as shown in the following example:
Companies A, B, C
Ownership of A in B
60 % |
Overall |
100 % |
Voting |
20 % |
Non-voting |
80 % |
Retained |
Ownership of B in C
70 % |
Overall |
90 % |
Voting |
50 % |
Non-voting |
60 % |
Retained |
Calculation of the group share in company C
42 % |
= |
60 * 70 |
Overall |
54 % |
= |
60 * 90 |
Voting |
30 % |
= |
60 * 50 |
Non-voting |
48 % |
= |
80 * 60 |
Retained |
When calculating the group share in company C, the overall percentage (group) share for company A in company B (60%) is multiplied by the respective shares of company B in company C. To determine the group share in retained equity, however, the shares in retained equity on each hierarchy level are multiplied together.