Executing Impairment Postings for Consolidation Group World

After an impairment test to check whether the goodwill still contains value, an impairment posting is executed for investee CAN00 - Canada in consolidation group World which reduces the goodwill.  

 The reduction of the goodwill is manually posted on the $GW_IMP FS item,document type 36, activity type 03 - Amortization of Goodwill. $000000OFF FS item is used as an offsetting FS item.  

The $GW_IMP FS item posting triggers a debit posting on the 711000 - Share of EM P&L FS item and this triggers the Closing P&L & Earnings Effect in the Balance Sheet as a consequence. 

Next to the impairment test and posting for consolidation unit CAN00 - Canada in consolidation group World, an impairment test and posting for consolidation unit USA00 - United States in consolidation group World has to be posted, too.   

After saving the impairment postings, the 2101 - Cons. Of Invest (Act.-Based) task needs to be executed again. 

After re-execution of the2101 - 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. 

We will first focus on the Amortization of goodwill of consolidation unit CAN00 - Canada. 

The following figure explains which postings are triggered by the statistical FS item $GW_IMP after execution of the 2101 - Cons. Of Invest (Act.-Based) task. 

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

Since we are in consolidation group World, 20 % of the goodwill reduction belongs to minorities. You can see this in the presented posting logic. 

The figure above also shows the Amortization of Goodwill postings from a debit-to-credit perspective in the task log. 

We will now focus on the Amortization of goodwill of consolidation unit USA00 - United States. 

The figure below explains which postings are triggered by the statistical FS item $GW_IMP after execution of the 2101 - Cons. Of Invest (Act.-Based) task. 

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

The system calculates these postings in group currency as well as in the local currency USD of the purchase investee USA00 - United States. 

The figure above shows the Amortization of Goodwill postings from a debit-to-credit perspective and shows the relevant Document in the task log.