How to manage scope changes with SAP BusinessObjects Planning and Consolidation 10.0, Version for SAP Netweaver Starter Kit for IFRS? Part 4

[fabienne_rojo]

This series of seven blogs is dedicated to handling scope changes using “SAP® BusinessObjects^TM Planning and Consolidation 10.0, Version for SAP Netweaver Starter Kit for IFRS". The objective is to illustrate in the BPC Starter kit for IFRS some of the most frequent scope changes.

Part #1: How to manage scope changes with SAP BusinessObjects Planning and Consolidation 10.0, Version for SA...

Part #2: How to manage scope changes with SAP BusinessObjects Planning and Consolidation 10.0, Version for SA...

Part #3: How to manage scope changes with SAP BusinessObjects Planning and Consolidation 10.0, Version for SA...

Part #4: Partial disposal of an investment in a subsidiary while control is retained - this blog

Part #5: Step acquisition

Part #6: Loss of control while retaining an interest

Part #7: Internal merger between two subsidiaries

Each blog introduces a practical guide that deals with the following questions:

-          What are the regulation requirements that applies to the business case

-          How to handle the business case in the starter kit for IFRS

-          What are the impacts on the financial statements

The business cases presented in these blogs are included in the set of data provided with BPC NW 10.0 Starter kit for IFRS. You can consult them in the database. Please, refer to the operating guide delivered along with the starter kit for further detail on the consolidation process.

These blogs have been written by members of the SAP EPM (Enterprise Performance Management) Starter Kits & Innovations team that develops starter kits on top of SAP financial consolidation products, Financial Consolidation (FC) and Business Planning and Consolidation (BPC). The starter kits are preconfigured contents created to deliver business logic, to speed-up the application deployment and to provide guidance to help maximize advantages of the product. The contents provided in the starter kits consist of reports, controls and rules for performing, validating and publishing a legal consolidation in accordance with IFRS. SAP starter kits for IFRS are provided to BPC/FC customers at no additional charge; they can be downloaded from SAP service market place at http://help.sap.com/.

Now to the fourth blog!

Presentation of the business case

Year 2012

Parent company P4 (USD) purchased a 100% interest in subsidiary PS4 for USD125 000

PS4 Fair value of net assets is USD100 000

Goodwill calculated = USD25 000

Year 2013

PS4 Profit for the year = USD20 000

Year 2014

P4 sells 30% interests to NCI for USD40 000 at the beginning of 2014.

P4 individual accounts in 2014:

PS4 individual accounts at 2014 opening:

Practical guide

Please click here to access the practical guide

Acknowledgements to Laetitia Lamoureux, Caroline Verrier and Jean-François Bouillon from the EPM SK&I team for their high contribution to the "Consolidation Practical guide".

Your comments about the contents are very welcome. Let us know what you wish to write about.
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[#2]

You posted the how-to earlier then I thought. Thank you!

[Former Member]

Hi Fabienne,

i happened to read your starter kit alongside the original SAP EC-CS documentation from 2001 and here are my impressions:

A. what i liked about it:
1. professional presentation which is very pleasing to the eye
2. flows read and cross-foot nicely from left to right
3. inclusion of cash flows in addition to the balance sheet

B. what i found lacking:
1. i couldn't find any references to debits and credits in the text of your document even though there was a discussion of journal entries and some pictures have DR's & CR's.
2. i'm also not sure what is meant by 'financial interest rate', i think this refers to 'ownership percentage', but i could be wrong.
3. it's not clear if the schedules are in Excel or some other (web?) client and what is the flow from manual (or upload) entry via calculation to the final financial disclosure.
4. what were the full statements of entities involved in the consolidation? i couldn't find income statements. simple is good, but page 2 is an oversimplification.
5. aren't the columns supposed to foot as well? on some pages they don't and i'm not sure why.

i'm assuming this is work in progress and is offered as such at this point, but without having equal access to ECC and SBO my analysis is necessarily superficial.

rgds,

greg

[fabienne_rojo]

Hi Greg,

Financial interest rate: percentage of capital that a parent company holds directly or indirectly in the held company. Basis of the Non Controlling Interest calculation
All schedules are screenshots from the BPC starter kit whose schedules are retrieved via the EPM Add In for BPC.
Regards,
Fabienne