Skip to end of metadata
Go to start of metadata

1.Conclusion

-        In method, we can use ‘L’ and ‘D’ to differentiate two different scenarios:

  • ‘L’ (Left at last year-end)
  • ‘D’ (Disposed during the year)
  • -        In ‘Elimination and Adjustment’ rule, there’s only ONE rule type for Leaving:

                           

     

    -        The behavior for ‘L’ type elimination rule works in the same way for both ‘L’ and ‘D’ method, which is to reverse all Balance Sheet accounts (account type = AST or LEQ) with corresponding destination audit ID

    P&L accounts will not be handled by this type of rule.

     

    -        P&L accounts needs to be handled by generic type rules.

     

    2. Example:

    2.1 Period 2009.Dec

    Until 2009.Dec, three entities (C2000/C3000/C4000) belong to one group (G_CG2):

     

     

    The transaction data for 2009.Dec:

     

     

    One Elimination rule is defined to reverse the P&L account by the minority ownership percentage (1-POWN):

     

     

    Please notice that the details rules are set to ‘Periodic Calculation’.

     

    Definition of used multiplier, which only works for method ‘Holding’ and ‘Global’:

     

     

    Consolidation result for 2009.Dec:

     

     

    The elimination result is saved in the target audit id, AJ_ELIM, with correct amount.

     

    2.2  Period 2010.Jan

     

    In next year, 2010.JAN, entity C3000 was sold at the begin of the year:

     

     

    Define a new elimination rule with rule type ‘L’ and target audit id ‘AJ_SOLD’, no details needed.

    This rule will only handle the Balance Sheet accounts.

     

     

    For the P&L rule, add a new line for ‘L’ method which will reverse all P&L amount with a different target flow with YTD basis.

     

     

    For corresponding multiplier, it only works for method ‘L’ (20).

     

     

    Consolidation result:

     

     

    -        Balance Sheet accounts for C3000 were 100% reversed in audit ‘AJ_SOLD’ (done by ‘L’ type rule)

    -        The opening flow amount was then reclassified to flow ‘F_VARLEAVE’ (done by scope change in elimination)

    -        The P&L accounts for C3000 were 100% reversed in audit ‘AJ_ELIM’ (done by generic rule) with different target flow member

    -        The P&L accounts for C4000 were partial reversed by ownership percentage

     

    2.3  Period 2010.Feb

     

    In 2010.Feb, entity C4000 was sold during the middle of the year.

     

     

    For P&L rule, add one addition detail line for ‘D’ method to only reverse the P&L accounts after the disposal, which is set with ‘Periodic Calc’ with a different target flow member.

     

     

    The corresponding extra multiplier which only works for ‘D’ method (20):

     

     

    Consolidation result:

     

    -        All Balance Sheet accounts for both C3000 and C4000 are reversed by ‘L’ type rule

    -        P&L accounts for C3000 are 100% reversed into flow F_650

    -        For C4000, the elimination result for P&L amounts happened before the disposal is unchanged compared with 2016.Jan

    -        For C4000, the P&L amounts happened in 2010.Feb (after the disposal) is 100% reversed into a flow F_640

     

  • No labels