This 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 #3: Acquisition of further equity interests from Non Controlling Interests – this blog
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 third blog!
Presentation of the business case
Parent company P3 (USD) purchases a 75% interest in subsidiary PS3 for USD90 000
PS3 Fair value of the NCI (25% equity interests) is USD28 000
PS3 Fair value of net assets is USD100 000
Goodwill calculated with the full goodwill method = USD18 000 (15 000 attributable to P3 and 3 000 to third party)
PS3 Profit for the year = USD20 000
P3 acquired the 25% equity interests held by NCI for USD35 000 at the beginning of 2014.
P3 individual accounts in 2014:
PS3 individual accounts at 2014 opening:
Please click here to access the practical guide
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)