This first series of seven blogs is dedicated to handling scope changes using “SAP® BusinessObjectsTM Planning and Consolidation 10.0, Version for SAP Netweaver Starter Kit for IFRS”. The objective is to illustrate in the BPC Starter kit for IFRS some of the most frequent scope changes.
Blog #1: Acquisition of a subsidiary (full goodwill method) – this blog
Blog #2: Loss of control without any retained interest
Blog #3: Acquisition of further equity interests from NCI
Blog #4: Partial disposal of an investment in a subsidiary while control is retained
Blog #5: Step acquisition
Blog #6: Loss of control while retaining an interest
Blog #7: Internal merger between two subsidiaries
Each blog introduces a practical guide that deals with the following questions:
– What are the regulation requirements that applies to the business case
– How to handle the business case in the starter kit for IFRS
– What are the impacts on the financial statements
The business cases presented in these blogs are included in the set of data provided with BPC NW 10.0 Starter kit for IFRS. You can consult them in the database. Please, refer to the operating guide delivered along with the starter kit for further detail on the consolidation process.
These blogs have been written by members of the SAP EPM (Enterprise Performance Management) Starter Kits & Innovations team that develops starter kits on top of SAP financial consolidation products, Financial Consolidation (FC) and Business Planning and Consolidation (BPC). The starter kits are preconfigured contents created to deliver business logic, to speed-up the application deployment and to provide guidance to help maximize advantages of the product. The contents provided in the starter kits consist of reports, controls and rules for performing, validating and publishing a legal consolidation in accordance with IFRS. SAP starter kits for IFRS are provided to BPC/FC customers at no additional charge; they can be downloaded from SAP service market place at http://help.sap.com/.
Now to the first blog!
Presentation of the business case
Practical guide
Please click here to access the practical guide
The Next Blog
In the next blog of this series, we will look at the loss of control without retaining an interest in a foreign subsidiary
Acknowledgements to Laetitia Lamoureux, Caroline Verrier and Jean-François Bouillon from the EPM SK&I team for their high contribution to the “Consolidation Practical guide”.
Your comments about the contents are very welcome. Let us know what you wish to write about.
International Financial Reporting Standards (IFRS)
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Thanks for this excellent blog (& Practical guide). Series of practical guides on BPC NW is a long pending demand from user/consultant community.
If possible please extend it with below topics (available in BO FC group)
1) Elimination of internal profit on inventories (across a supply chain)
2) Deferred taxes
Some additional topics available in SAP BCS group.
3) Decoupling (Allocation) of Goodwill
4) DisclosureNon-Controlling Interest in Income
5) Change in Ownership without Change of Control
6) Handling of Assets held for Sale and Discontinued Operations
Thank you for your suggestions. Point 5 (equity transaction) will be the subject of blogs #3 and 4. A blog by Patricia Meteil and a documentation available on SMP will be available within the end of the month that analyzes IFRS5 and proposes implementation in BO FC.
Best regards,
Fabienne
May I know if the IFRS starter kit have the logic to handle IntraPeriod acquisition?
Thanks
Halomoan
The IFRS starter kit handles the intraperiod acquisitions as follows:
In the data input forms, the opening balances for the balance sheet will be populated based on the position at the date the entity enters the scope, and the movements will correspond to the variation between that date and the closing date only.
As for the income statement, the amounts to enter correspond to the income and expenses over the same period.
In the case of a foreign entity, the opening balances will be converted using the spot rate at the acquisition rate, thanks to a feature of BPC that enables you to enter specific rates for entities (outgoing/incoming entities). A specific section of the BPC NW 10.0 Starter kit for IFRS operating guide is dedicated to incoming entities.
Best regards,
Fabienne