Goodwill and NCI Calculation in subsequent Consolidation

[Former Member]

Dear All,

Typically BPC doesn't store information about first acquisition date, no. of shares etc. (for the purpose of Consolidation) and also I didn't find any SAP literature talking about Pre-Acquisition and Post-Acquisition Reserves etc.

To calculate Goodwill and NCI let's say at the acquisition we have a logic like this :

Goodwill(indirect goodwill method) = Consideration Paid(investment) - POWN * Net Assets(or equity) from pre acquisition

NCI pre portion + NCI Post portion = (1-POWN) * Net Assets

Now, let's say if we perform consolidation second time, do we need to copy the pre acquisition information from first to second period??

Otherwise how the system will calculate goodwill again??

Best Regards,

Rakesh

[former_member225135 · Accepted solution]

Hi Rakesh,

Pre-acquisition information becomes part of your Historical data and hence the pre-acquisition information have to be copied from one period to another.

You can do it in 3 ways:

1. Account based Calcualtion rules

2. Carry Forward Rules

3. Copy Package.

Regards,

Rahul

[Former Member · Accepted solution]

I may not agree with you that it becomes part of historical data

But will wait for some right approach or responses

[former_member225135 · Accepted solution]

Hi Rakesh,

What I mean to say is that the treatment of pre-acquisition profit/loss should be same as of Historical Data.

As Historical data are carried forwarded/copied from one period to another, the same process need to be followed for pre-acquisition profit/loss.

Regards,

Rahul