Knowledge quiz

It’s time to put what you’ve learned to the test, get 3 questions right to pass this unit.

Which of the following statements are correct?

There are three correct answers.

With the Equity Method, Goodwill is calculated in the same way as in the Purchase method during the first consolidation.

The equity holdings adjustment data reported by the investee unit in subsequent consolidation triggers an adjustment to the investment book value of the direct investor units according to each of their direct shares.

All postings are done on the direct investor unit when using the Equity Method.

In subsequent consolidations using the equity method, the equity in earnings of affiliates items are not updated based on events such as recording of net income, distribution of dividends, payment of bonuses, or currency translation differences. The equity in earnings remains constant throughout the consolidation process.

Which of the following statements are correct?

There are two correct answers.

An FS item role can be assigned to multiple FS items in a certain fiscal year, period, and consolidation version.

Financial Statement Items used in Activity-based Consolidation of Investments are not specified directly. Instead, you define the financial statement (FS) items used in the Activity-based Consolidation of Investment postings using the Selection Objects, FS item role attribute, and Non-controlling interest (NCI) target attribute.

You use the Non-Controlling Interest (NCI) target attribute to specify the FS items for NCI postings in the consolidation of investments.

Selection objects are not used to group consolidation master data, such as financial statement items, subitems, document types, and posting levels.

Which of the following statements are correct?

There are two correct answers.

The treatment types for positive goodwill supported include Direct elimination and Extraordinary amortization.

When selecting Post Goodwill at Investee Unit, the goodwill will be posted to the investor consolidation unit.

When you use a consolidation of investment method with the setting Extraordinary Amortization for positive goodwill and additionally select Carry Goodwill in Local Currency, you can make it possible to manage goodwill in local currency as required by IFRS.

According to IFRS, only the setting Extraordinary Amortization for negative goodwill is allowed as a selection in a consolidation method but not the setting Direct Writeoff.

Direct elimination should be the default setting for positive goodwill.

Which of the following statements are correct?

There are three correct answers.

The 2101 Cons. Of Invest. (Act.-Based) task is predefined in the standard SAP system for the execution of Activity-based Consolidation of Investments.

It is possible to use Activity-based and Rule-based Consolidation of Investments within one common consolidation version and both tasks can be used in one common Consolidation Monitor within one consolidation version.

If you create several Activity-based Consolidation of Investment tasks, you have to create one document type per task.

All tasks for a consolidation group do not need to be completed and blocked in the Data Monitor before you can run the 2101 Cons. Of Investment (Act.-Based) task for this group in update mode.

When running the 2101 Cons. Of Invest. (Act.-Based) task, the system reverses all documents from the previous run and then posts new ones. This task can therefore be repeated as often as required.