Goodwill calculation procedure in Purchase method

[Former Member]

Hi,

We are configuring the consolidation model where purchase method of consolidation is used.

Out of 30 subsidiaries 1 subsidiary is acquired  at an ownership percentage of 75%. So here the calculation of minority interest is done.

The other requirement is the configuration of business rule for goodwill if the parent is acquiring a subsidiary by paying more than the fair value of the stocks.

I have observed a few places where a business rule is written, but unable to correlate and understand.

Could you please let me know how I can do this in the BPC 10.0 system.

Regards,

Shilpa

[Former Member · Accepted solution]

Hi Shilpa,

Goodwill is a very complicated scenario in Consolidation of Investment .My suggestion you to you keep post your goodwill by journal entry like when 1st consolidation are run you may post.

Dr Goodwill    xxxx

Dr Equity        xxxx

Cr Investment            xxxx

Cr Minority Interest     xxxx

Khokan