Reporting on the Equity Method Results

Good job Robert!

Now that you have run task 2100 and evaluated the log entries for the equity method, we can review the results in a report.

In the following image, you can view the results of the equity elimination.

Note: PCC = Preparation for Consolidation Group Change, FC = First Consolidation, SC = Subsequent Consolidation, MJE = Manual Journal Entry.

1. PCC: Reverse reported data for the investee.
2. MJE: Post goodwill in a manual group journal entry for the investee.
3. PCC: Reverse standardized data for the investee.
4. FC: Book Investment at Equity for the investment of 130.000 with an offset to Elimination of Investment in Held Consolidation Units for the investee.
5. FC: Post the group share of the investee’s Prior Years Retained Earnings with an offset to Non-controlling Interest Prior Years Retained Earnings (12.992) for the investee.
6. FC: Eliminate the Investment of 130.000 with an offset to Elimination of Investment in Owning Consolidation Units for the parent.
7. SC: Allocate the group share of earnings to Investment at Equity with an offset to Current Year Retained Earnings (2.318) for the investee.
   Note

   The total for Investment at Equity in the image is 132.318 because it includes 130.000 from #4 and -2.318 from #7.
8. SC: Allocate the group share of earnings to Share of Earnings in Equity Subsidiaries with an offset to Net Income / Loss 2.318) for the investee.

Congratulations! You have now completed Consolidating Investments in Group Reporting (Rule-Based). Use this knowledge to further enable yourself as an intermediate consolidation consultant, and feel free to check the following links to gain further insight on the discussed topics:

Overview of Consolidation of Investments