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Minority Interests

Former Member
0 Kudos

How does SEM BCS calculates minority interests? If there are changes such as %, does it automatically reflect on both investor and investee?

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
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I'll allow myself to add that providing information in totals data is also possible:

Former Member
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Thanks for the replies above. I have scenario related to Minority Interests:

Company A owns Company B by 80%

So Minority Interest in Company B = 20%

Then Company A issues share to employees in Company B = 2%

Will BCS be able to automatically recalculate to this:

Company A owns B = 80 - 2 = 78%

Minority Interest in Company B = 20 + 2 = 22%

Assuming if we can pump in the percentage of shares issued out into BCS.

Thanks.

dan_sullivan
Active Contributor
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The system will adjust ownership and values automatically as long as the investment and equity data is updated according to the configuration of COI location of values.

Answers (1)

Answers (1)

dan_sullivan
Active Contributor
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If there is a change of ownership that is recorded in the system, typically updating the Additional Financial Data (AFD), BCS will reflect this for the consolidation group that includes both the investor and investee.

Normally such a change is recorded in bot the source ldegers as weel as AFD as a change to the investment balance for the investor and a change to the equity balance of the investee. The % change is recorded in the AFD only.

FYI, this scenario assumes tha the location of Investment and Equity data for First Consolidations, Increases/Decreases in Capital in the Consolidation of Investments settings is via AFD.