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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: How to manage scope changes with SAP BusinessObjects Planning and Consolidation 10.0, Version for SAP Netweaver Starter Kit for IFRS? Part  6

Part #7: Internal merger between two subsidiaries – this blog

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 seventh blog!

Presentation of the business case

Year 2013

P7 owns 100% interests of subsidiary PS7 and 100% interest of subsidiary PS71

A fair value adjustment has been accounted for in PS71:

(USD6 000 – 33% deferred tax = USD4 000)

A goodwill of USD6 000 has been posted on PS71

Year 2014

PS71 net income = USD15 000

At the end of Year 2014, PS71 is merged into PS7

PS7 increase its share capital with 2 000 shares (nominal value of USD10) à USD20 000

PS7 accounts for a share premium of USD65 000 (total equity USD85 000 – increase in share capital USD20 000)

P7 individual accounts in 2014 (including intercompany accounts)

 

PS71 individual accounts in 2014 (with intercompany accounts):

Detailed merger of PS71 into PS7:

 

PS7 individual accounts (with intercompany accounts):

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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