Running Preparation for Consolidation Group Change

Objectives

After completing this lesson, you will be able to:

  • Run preparation for consolidation group change

Run Preparation for Consolidation Group Change

In general, you run preparation for consolidation group changes to adjust reported, standardized, and eliminated data when the investment structure changes. These changes include acquisitions, divestitures, and method changes. After running preparation for consolidation group change, the financial statements contain only the data that arose during the time the consolidation unit was part of the consolidation group.

For more information, access the following link: Preparation for Consolidation Group Changes

In addition, preparation for consolidation group change also revokes values for equity subsidiaries so that their financial data is excluded from the consolidated financial statements. In our use case, we need to run the preparation for consolidation group change task because Canada is an equity subsidiary.

Note
To run preparation for consolidation group change, a preceding task must be run first. If a preceding task is not run before preparation for consolidation group change, the resulting documents are in draft status and the values will not appear in reports.

You run preparation for consolidation group change from the consolidation monitor.

Preparation for Consolidation Group Change Task

After running preparation for consolidation group change, the log indicates that the values are revoked.

Run Preparation for Consolidation Group Change

Business Scenario

At ABC Corporation, you need to run the preparation for consolidation group change task because Canada is an equity subsidiary.

What skills will you develop in this practice exercise?

  • Run the preparation for consolidation group change task.
  • Confirm that the values are revoked.

Log in to track your progress & complete quizzes