Minority interest - functional knowledge & grouping for Consolidation

[former_member200190]

Hi Experts,

Scenario

A > holds 100% in B, 10% in C, 5% in D

B > holds 90% in C, 95% in D, 100 % in E, 1 % in F

E > holds 99 % in F

No shares are owned by parties outside the group.

1) Minority Interest

In case like this will MI be accounted for?

Can we say B's holding of 1% in equity of F as minority holding?

Similarly A's holding of 5 % in D; 10% in C?

2) Consolidation Groups - in this scenario will be

CG 1 - E & F (E - Parent, Purchase Method)

CG 2 - B, C, D, F & CG1 (B - Parent, Purchase Method)

CG 3 - A, C, D & CG2 (A - Parent, Purchase Method)

Many Thanks!

Kumar

[dan_sullivan · Accepted solution]

Assuming purchase method is assigned to all cons units for all cons groups, the MI will not occur for CU F in CG2 because at CG2 ownership is 100% as it includes CG1.

[former_member200190 · Accepted solution]

Thanks Dan!

Yes, purchase method is assigned to all Cons Units and groups.

Having said that, is the grouping correct?

[dan_sullivan · Accepted solution]

The groupings look correct to me.

[former_member200190 · Accepted solution]

Thanks! Dan.