Comprehending Additional Consolidation of Investments (C/I) Contr

Additional Control Data for Consolidation of Investments

Activity-based Consolidation of Investments automatically posts the adjustments and eliminations needed because of the investment relationship between consolidation units.

This is possible only when additional C/I control data is reported to complement the data reported by the consolidation units with only financial statement (FS) items and subitems.

The additional C/I control data is used to track business activities that occur during a period, such as first consolidation and subsequent consolidation.

This image depicts the additional control data for Consolidation of Investment.

Additional C/I control data is reported using the following fields:

Investee: Identifies the subsidiary to be treated in the consolidation of investments.

Activity: Drives the posting logic of the consolidation of investments.

The following activities are supported:

01 First consolidation
02 Subsequent consolidation
03 Amortization of goodwill
05 Increase in capitalization
06 Reduction of capitalization
07 Step acquisition
08 Partial transfer
09 Total transfer
10 Partial divestiture
11 Total divestiture
16 Horizontal merger
17 Vertical merger
19 Capitalization of Manual Goodwill
24 Update of retained earnings merger.

Activity number: Sequential number (internally assigned) that identifies a C/I activity of an investee unit at a posting date (or period).

Posting date: Use to sequence the activities of an investee unit within a period.

Unit of measure/Quantity: Use to report the direct ownership percentage and to calculate the group share based on the group structure information.

Additional C/I control data can be collected using:

The Flexible Upload app
The Data Collection Task in the Data Monitor
Group Reporting Data Collection (GRDC)
The Post Group Journal Entries app.

Which Financial Statement (FS) items allow for the upload of activities?

For Balance Sheet or Profit and Loss (P&L) FS items, you can only enter activity types included in theS-COI-INV (COI - Investments) and S-COI-EQUITY (COI - Equity) selection objects.

This means, that if an accounting FS item is not included in these selection objects, the activity type cannot be uploaded.

Additional Consolidation of Investment Control Data Field: Activity

The figure below describes which activities must be assigned to the investment or equity FS items manually and which are automatically assigned.

This image describes which activities must be assigned to the investment or equity FS items manually and which are automatically assigned.

Activity 02 (Subsequent Consolidation) is automatically assigned for FS Items with the role S-ANI-BS (Annual Net Income - B/S), like 317000 - Net Income.

The Net Income FS item is calculated by the Calculate Net Income task or in group journal entries on posting levels 01-10.

The investee is also automatically inherited from the partner consolidation unit in the investment FS item data set.

Note

The Activity number is automatically assigned. The same number is assigned to a unique combination of investee, activity, and period/posting date.

Default Processing of Pre-defined Sequence of Activities

Within one period, several activities can occur for one investee unit. For example, a step acquisition and an increase in capitalization occur in the same period.

The postings and results of the Activity-based C/I task depend on the sequence the system uses to process the entered C/I activities.

This image shows the default sequence of activities.

The figure above shows the pre-defined sequence of activities that the consolidation of investments processes by default.

In the Default Sequence, one activity is selected as the "Up to here" threshold.

This results in the processing of the activities from the range of 01 to 11 for each of the consolidation units.

Due to these results, the existing activities from the range of 12 to 24 are executed for the same consolidation units.

Note

When necessary, you can manually change the above-listed sequence.

Additional Consolidation of Investment Control Data Field: "Investee"

This image shows that the Investee field will automatically be filled when the Upload is executed.

For the Additional C/I control data field"Investee" the following applies::

For Equity FS items, the investee is automatically replicated from the consolidation unit.
For Investment FS items, the investee can manually be assigned by the user, or is automatically replicated from the partner unit.

Additional Consolidation of Investment Control Data Fields: Unit of Measure and Quantity

It's sufficient to deliver direct ownership percentages in your upload file.

The Unit of Measure and Quantity are manually assigned to the Investment FS item of the consolidation unit (investor) for direct ownership percentage. The percentage is based on the consolidation unit's investment in the partner unit (investee).

This image shows how Direct Ownership Percentages are stored in the ACDOCU table when the upload is executed.

The system calculates direct shares (the direct ownership percentage) and group shares on the fly when processing the activity-based C/I task.

Comprehending Additional Consolidation of Investments (C/I) Control Data