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Goodwill Automation with SAP Financial Consolidation 10.0

Goodwill Automation With SAP® Financial Consolidation 10.0

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In today’s globalized and volatile economy, mergers and acquisitions are becoming one of the hottest topics in the Financial Close process. In most cases, these acquisitions, business combinations, joint-ventures or increases in ownership raise the question of goodwill determination. Therefore, automating goodwill calculation in compliance with International Financial Reporting Standards (IFRS) is becoming a high priority and by the way constitutes a recurring request from customers and partners who leverage the starter kit for IFRS on top of SAP® Financial Consolidation.

The Automated Calculation of Goodwill feature has been released for the first time in the Support Package 1 of SAP® Financial Consolidation 10.0, Starter Kit for IFRS. Compared to the previous release, the starter kit for IFRS support package 1 now includes the following key benefits for customers:

  • Calculation of goodwill and bargain purchase for incoming companies according to IFRS 3 Business Combinations and IAS 28 Investments in Associates
  • Optional booking of related journal entries during the consolidation processing
  • New equity control report for incoming companies with better audit trail on automatic journal entries related to elimination of investments, booking of goodwill and accounting for non-controlling interests
  • New demonstration data sets for illustrating goodwill calculation and booking

The Goodwill Automation With SAP® Financial Consolidation document walks the reader through the whole process completed for the implementation of this feature. It spans a wide variety of business and product topics from the business scenario which describes goodwill calculation from the accounting perspective, up to detailed considerations about the software configuration objects design, across the sets of data based on the business scenario which were created to test and illustrate this new feature.

Download

To download the Goodwill Automation document, Click here (SAP Service Market Place, login required)

Sincerely,

Stephane Neufcourt

Director, SAP Enterprise Performance Management

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