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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 #1: How to manage scope changes with SAP BusinessObjects Planning and Consolidation 10.0, Version for SAP Netweaver Starter Kit for IFRS? Part 1

Blog #2: How to manage scope changes with SAP BusinessObjects Planning and Consolidation 10.0, Version for SAP Netweaver Starter Kit for IFRS? Part 2

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

Now to the third blog!

Presentation of the business case

Year 2012

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)

Year 2013

PS3 Profit for the year = USD20 000

Year 2014

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:

Practical guide

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)

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  1. Gregory Misiorek
    great progress since last year. it is a proof of substantial investment that has poured into development and integration of BO into Netweaver.

    and now i know who’s behind @SAP_IFRS_XBRL handle, too.

    1. Former Member Post author
      Hi Halomoan
      This will be the subject of the next case, planned to be issued at the end of this month: An equity transaction with a decrease in interest rate.
      As explained in case 3, only a change in control is a significant economic event. Once control has been achieved, any subsequent transactions that do not result in a loss of control are accounted for as equity transactions.

      Equity transactions should be accounted for as follows:

      The carrying amounts of the controlling and non-controlling interests shall be adjusted to reflect the changes in their relative interests in the subsidiary.
      Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration received shall be recognized directly in equity and attributed to the owners of the parent.
      No change in the carrying amounts of the subsidiary’s assets (including goodwill) should be recognized as a result of such transactions
      Neither gain nor loss is recognized in the net income.

      Regarding the modification of the allocation of goodwill between parent and non-controlling interests, IAS27 doesn’t provide any guidance. (Whereas for an increase, there is an indication in the conclusion of IFRS3 that any further increase should impact the allocation)



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