Consolidation of Investments
Business Background
Why Consolidate Investments?
IFRS
Concepts
Consolidation of Investments
Purchase Method
Uniting-of-Interests Method
Proportional Consolidation
Equity Method
US GAAP
Concepts
Consolidation of Investments
Purchase Method
Pooling-of-Interests Method
Proportional Consolidation
Equity Method
German HGB
Concepts
Consolidation of Investments
Purchase Method
Pooling of Interests
Proportional Consolidation
Equity Method
Comparisons
Concepts
Consolidation of Investments
Purchase Method
Purchase Method
Pooling-of-Interests Method
Proportional Consolidation
Equity Method
Multilevel Groups
Step Consolidation
Simultaneous Consolidation
Stepwise Simultaneous Consolidation
Basic Functions
Calculation Base
Investment
Totals Data
Additional Financial Data
Equity
Equity Holdings Adjustments
Goodwill
Accounting Techniques
Treatment of Acquisitions in a Consolidation Group
Activities
Initial Example: Activities
Acquisition
First Consolidation
Example: First Consolidation
Step Acquisition
Example: Step Acquisition
Change in Capitalization (Increase and Reduction)
Example: Increase in Capitalization with Unchanging Shares
Example: Increase in Capitalization with Rising Shares
Capitalization of Manual Goodwill
Example: Capitalization of Manual Goodwill
Subsequent Consolidation
Example: Subsequent Consolidation
Distribution of Dividends
Example: Distribution of Dividends
Amortization of Goodwill
Example: Amortization of Goodwill
Investment Adjustment (Amortization/Writeup of Investments)
Example: Investment Writeup
Divestiture
Partial Divestiture
Example: Partial Divesture
Total Divestiture
Example: Total Divestiture
Transfer
Example: Partial Transfer with Unchanging Ownership Percentage
Indirect Activities
Example: Scenario for Indirect Activities
Example: Increase in Indirect Investment
Method Change
Example: Method Change
Treatment of Goodwill
Example: Direct Writeoff of Goodwill
Example: Direct Elimination of Goodwill
Example: Periodic Reduction of Goodwill
Threshold Value for Goodwill
Amortization/Reduction over Remaining Life
Additional Functions
Legacy Data Transfer
Example: Legacy Data Transfer
Negative Stockholders’ Equity
Example: No Calculation of Minority Interest
Example: Allow Negative Investments
Appropriation of Retained Earnings
Example: Appropriation of Retained Earnings in the Balance Sheet
Example: Appropriation of Retained Earnings in the Inc. Stmt
Mutual Stock Method
Direction Indicator for Elimination of Investment Income
Example: Investee Unit Consolidated with Mutual Stock Method
Example: Investor Unit Consolidated with Mutual Stock Method
Example: Investee and Investor Unit with Mutual Stock Method
Organizational Change
Top Node for Organizational Change
Organizational Change Number
Investment Data for Organizational Changes
Example: Transfer with Organizational Change
Goodwill in Local Currency
Customizing for Goodwill in Local Currency
Key Figures for Goodwill
Currency Translation for Goodwill
Example: Goodwill in Local Currency
Manual Changes to Automatically Generated Goodwill
Example: Manual Change of Automatically Generated Goodwill Entry
Goodwill in Divestitures and Transfers
Example: No/Complete Goodwill Reduction for Partial Divestiture
Example: No/Complete Goodwill Reduction for Partial Transfer
Migration of C/I Data from ECCS to SEMBCS
Adjustment of Stat. Postings in Consolidation of Investments
Customizing
Settings
System Utilization
Location of Values
Goodwill Global
Negative Stockholders’ Equity, Global
Equity
Appropriation of Retained Earnings
Scope of Reported Data for the Equity Method
Equity Method Posting
Selected Items
Activities
Number Ranges
Task
Method
Document Type
Check Settings