Non controlling /Minority interest

[Former Member]

For a particular entity, the non controlling interest amount has to be calculated with different percentage for different GL accounts.

Example a ENTITY 1000 needs to be consolidated in its parents scope as follows:

Equity account ( Group share is 80%, Non controlling is 20%)

Retained earnings ( Group share is 80%, Non controlling is 20%)

Current year Netincome ( Group share is 60%, Non controlling is 40%).

How to calculate different minority interest percentage to different account in consolidation using only one POWN account formula.

Appreciate your inputs..

[former_member225135 · Accepted solution]

Hi,

For structure like this, use 2 Method type : POWN & PCON while maintaining ownership structure.

So let say you will maintain POWN in 80% and PCON 60%.

Create 2 different multiplier, one refering to POWN and other refering to PCON.

Refer this multiplier while creating elimination rules.

Also make sure that your during the year profit is posted on different flow in retained earning account.If it is not happening in that way, the above suggestion will not work.

I find this approach a easy way, there are other options too, but requires lot of efforts to build and validate.

Regards,

Rahul

[Former Member · Accepted solution]

Thanks for theinfo. Can I create a new ownership account called PCNI, rather than using the existing PCON and POWN?

What are the other options that you considered? Appreciate your inputs.

[former_member225135 · Accepted solution]

Hi,

It would be better if you can use existing structure only.

To be frank, i have never created new ownership account and tested. The approach which i have mentioned is well tested and is working.

Other option is to create script logic and again in that, you will require MI % for during the year's profit also somewhere in system.

Regards,

Rahul