on 01-25-2008 7:49 AM
How does SEM BCS calculates minority interests? If there are changes such as %, does it automatically reflect on both investor and investee?
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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.
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.
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