Fixed Assets & depreciation to happen on Group Consolidation level only

[Bezladnova]

Our client is implementing SAP Public Cloud & it has a Group Structure as shown below:

These Country Units are construction sites that will become operational sites over time.

The full Organizational structure contains 50+ Company codes & several regions, so SAP Group Reporting tool will be used for consolidation purposes.

When the Asset Under Construction is produced on the Country Unit level the following needs to be capitalised:

• cost of interest on the loans
• the cost incurred to finance loan A

The client is confident that based on IFRS rules, the capitalisation arises at the regional consolidation level only  (not on bottom level Company Code level).

So, the questions are:

• What is SAP best practice accounting for recognising the asset and its later depreciation? How to achieve this through SAP Group Reporting tool, provided that the intention for this assets & depreciation to happen on Consolidation level only?

We are aware that some Companies create dummy Company Code for this scenario. Meaning that the dummy Company code is created specifically to create Fixed Asset & depreciate it over time for consolidation level only.

Please could someone share with us if there is better way of satisfying this requirement in SAP Group Reporting tool apart of creating a dummy Company Code?

Thank you very much in advance!