The Group Structure of Consolidation Group World
The second lesson of this unit checks the results for the consolidation group World where consolidation unit DM00 - Denmark is consolidated into group World with the purchase method according to a direct share of 60 % of investor SW00 - Switzerland in investee DM00 - Denmark.
Executing Task 2101 Consolidation of Investments (Activity-Based) for Consolidation Group WORLD
The first and subsequent consolidation calculation occurs in test mode in the consolidation monitor for consolidation group World.
Consolidation Group WORLD: DM00
First Consolidation
Next to the elimination postings derived for consolidation group Europe, minorities in goodwill must be calculated since only 90% of the goodwill belongs to consolidation group World, and 10% belongs to minorities.
The video below explains how to calculate the minorities for the first consolidation for consolidation unit DM00 - Denmark in consolidation group World.
Summary: In this video, we explained the elimination postings when Denmark is consolidated into the consolidation group World.
First Consolidation Task Log
The task log for the first consolidation of consolidation unit DM00 - Denmark in the consolidation group World shows goodwill and minorities in goodwill in the Differential section.
The Document information in the task log describes the Elimination Posting Record and the Reclassification Posting Record we had set up for the first consolidation from a debit-to-credit perspective.
Subsequent Consolidation for Consolidation Group WORLD (DM00)
In consolidation group World, like the subsequent consolidation of consolidation unit DM00 in consolidation group Europe, the profit of the consolidation unit (FS item 317000 - Retained Earnings) runs into the first subsequent consolidation in period 12 of 2025. It triggers the calculation and posting of minorities but in this group with a group share for minorities of 46%.
Again, since this is a P&L-relevant activity, the earnings effect is automatically executed.
Since this is a P&L-relevant activity, the earnings effect automatically executes.
Subsequent Consolidation Task Log
The task log of the subsequent consolidation again shows the internal and external part of the net income of consolidation unit DM00 - Denmark. It also displays the Elimination Posting Record and the Closing P& L & Earnings Effect in the Balance Sheet from a debit-to-credit perspective.
Manual Activation of Goodwill
After executing the 2101 - Consolidation of Investments (Activity-Based) task, you must manually post the activation of goodwill using the Post Group Journal Entries app.
The figure below explains how to set up such a posting on the level of consolidation group WORLD.
As a result, 1461 EUR posts to the asset Financial Statement item163100 - Goodwill. This posting activates the goodwill.
The delta amount on the 321000 - NCI Goodwill Elimination and310000 - Goodwill Elimination is zero after the second activation posting on the level of consolidation group World.