Reporting on the Purchase Method Results

Objectives

After completing this lesson, you will be able to:

  • Report on the results of the purchase method

Report Results of the Purchase Method

Good job Robert!

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

In the following image, the key results are displayed.

Note

When you run task 2100, posting level 30 postings are generated.

Note

FC = First Consolidation, SC = Subsequent Consolidation, MJE = Manual Journal Entry.

  1. FC: Eliminate the parent’s Investment with an offset to owner consolidation units in posting level 30 (150.000).
  2. MJE: Post the subsidiary’s goodwill in posting level 10 (67.703).
  3. FC: Eliminate the subsidiary’s capital in posting level 30 (68.090).
  4. FC: Debit the subsidiary’s prior years retained earnings in posting level 30 (109.342,50).
    Note
    As a result, FR00’s total prior years retained earnings are zero.
  5. FC: Credit the subsidiary’s non-controlling interest - prior years retained earnings in posting level 30 (-27.432,50).
  6. FC: Credit the subsidiary’s investment for held consolidation units in posting level 30 (-150.000).
  7. SC: Debit the subsidiary’s current year retained earnings with an offset to non-controlling interest - current year retained earnings in posting level 30 (2.130).
  8. SC: Debit the subsidiary’s non-controlling interest net income with an offset to net income/loss in posting level 30 (2.130).

Report on the Results of the Purchase Method

Business Scenario

At ABC Corporation, you have configured and run the eliminations for the purchase method. Now, you need to report on the data.

What skills will you develop in this practice exercise?

  • Run a report in the Group Data Analysis app.
  • Create a new report layout to evaluate the investment eliminations data.

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