Analyzing Impairment Postings for Consolidation Unit DM00 in Consolidation Group EUR and WORLD

When your consolidation method for the purchase method uses the settingExtraordinary Amortization, and you execute an impairment posting, you either must: 

• Use content document type 36 in this posting. 
• Use a document type you created.  

This document type must contain the setting, Bus. Application 9 - Other. Ensure Post in local currency and Post in group currency are also selected in this document type.  

Assign document type 36 (or your own document type) to content task S350 - Man. Adj. 30. See this in the figure above.   

Finally, you must assign content task S350 - Man. Adj. 30 to the task group assigned to your consolidation monitor.  

For our scenarios, we enhance content task group S21 by taskS350 - Man. Adj. 30 as seen in the figure above.  

Use the impairment test to check whether the goodwill still contains value. After completing the impairment test, you must execute the impairment postings separately per consolidation group.   

The impairment posting reduces the goodwill. An expense is automatically posted into the P&L statement, which triggers the Closing P&L and Earnings Effect in the Balance Sheet. To trigger the automatic expense posting, manually post the reduction of the goodwill on statistical FS item $GW_IMP.    

For the offsetting item in the manual impairment posting, use the statistical dummy content FS item $000000OFF or your own statistical FS item. See document type 36 for the impairment posting for Extraordinary Amortization of positive goodwill.  

According to the impairment test, statistical FS item $GW_IMP is the FS item to post the goodwill reduction to.  

$GW_IMP is a trigger FS item from which the calculations start.  

In your posting, assign activity type 03 - Amortization of Goodwill, the consolidation unit DM00 and the partner unit SW00 to the G/L Line Item row which contains the posting for FS item $GW_IMP.  

The user does not need to specify the activity type or partner unit for the $000000OFF offset FS item.   

After saving the posting, you must re-execute the 2101 - Cons. of Invest (Act.-Based) task.  

After re-executing the 2101 - Cons. of Invest (Act.-Based) task, the protocol contains the results of the first and subsequent consolidation, as shown in the first lesson of this unit.  

In addition, the task log contains the section Amortization of goodwill.  

See which postings the statistical FS item $GW_IMP triggers after executing the 2101 - Cons. of Invest (Act.-Based) task in the following figure. 

As you can see, the reduction of goodwill triggers an expense in the P&L statement, which triggers the earnings effect.  

The figure below shows the impairment posting on the level of consolidation group World. The posting structure is the same as for the consolidation unit EUR.  

After saving the posting, you must re-execute the 2101 - Cons. of Invest (Act.-Based) task.  

After re-executing the 2101 - Cons. of Invest (Act.-Based) task, the protocol contains the results of the first and subsequent consolidation, as shown in the first lesson of this unit.  

In addition, the task log contains the section Amortization of goodwill.  

See in the figure above which postings the statistical FS item $GW_IMP triggers after executing the 2101 - Cons. of Invest (Act.-Based) task.  

The reduction of goodwill triggers an expense in the P&L statement, which triggers the earnings effect.  

Since we are on the level of consolidation group World, only 90% of the goodwill reduction refers to this group. 10% of the goodwill reduction is referring to minorities. The 10% increases the group's profit and triggers the Closing P&L and Earnings Effect in the BS.  

The figure below shows the posting logic and the data set development in table ACDOCU, resulting from the impairment posting.