Equity evaluation rules

Introduction

These rules allow for the valuation of Entities consolidated using the Net Equity method. With this method, the financial investments in associated entities are valued at an amount equal to the corresponding fraction of net equity resulting from the latest financial statements of the same companies.

To process an entity valued according to the equity method, you must run the Generate contribution data processing (Generate consolidable and Equity evaluation). This generates one or several valuation consolidation journals on the consolidation scenario.

Equity evaluation journals

The entity on which to generate the rows of the equity evaluation journal is chosen based on the Entity on which to generate equity evaluation journals parameter defined in the equity evaluation rules.

The equity evaluation journal is defined according to the following criteria:

Attribute	Settings
Financial investment	If the row entity is the owner entity, the counterparty entity is the owned entity at equity. Otherwise the counterparty entity is the owner entity.
Net Equity	If, in the list, the account has IC management selected, the counterparty entity present on the amounts data and journals subject to equity evaluation will be kept. Otherwise, the counterparty entity will be empty.
Profit/loss for entities consolidated at equity	If, in the list, IC Management is selected for the account, the counterparty entity will be the owned entity at equity. Otherwise, the counterparty entity will be empty.
P&L net result and other P&L accounts to keep	The counterparty entity is empty.