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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.

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

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

Part #3: How to manage scope changes with SAP BusinessObjects Planning and Consolidation 10.0, Version for SAP Netweaver Starter Kit for IFRS? Part 3

Part #4: How to manage scope changes with SAP BusinessObjects Planning and Consolidation 10.0, Version for SAP Netweaver Starter Kit for IFRS? Part 4

Part #5: How to manage scope changes with SAP BusinessObjects Planning and Consolidation 10.0, Version for SAP Netweaver Starter Kit for IFRS? Part  5

Part #6: Loss of control while retaining an interest – this blog

Part #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 sixth blog!

Presentation of the business case

Year 2012

P6 (USD) purchased a 100% interest in subsidiary PS6 for USD125 000

PS6 Fair value of net assets is USD100 000

A goodwill of USD25 000 was recognized.

Year 2013

PS6 Profit for the year = USD20 000

Year 2014

P6 disposes 75% of its equity interest in PS6 for USD115 000

P6 resulting 25% on PS6 is classified as an associate under IAS28 and has a fair value of USD38 000

P6 individual accounts in 2014:

PS6 individual accounts in 2014:

Calculation of the gain on sale of 75% of PS6:

  Fair value adjustment on 25% retained interest of PS6:

  Goodwill on the 25% of PS6

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.
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