Equity evaluation rules page
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Purpose of the page¶
This page allows you to set up the following information, necessary for the equity evaluation rules:
- accounts and categories to be subject to equity evaluation
- accounts involved for the purposes of financial investment valuation
- advanced setup
IMPORTANT: the rules defined on this page can be edited and overridden for each individual process.
Links on the page
| Element | Description |
|---|---|
| Accounts and categories | |
| Net equity Accounts | Opens a page to set up the accounts to be considered to calculate the value of the share of the owned entity’s net equity. |
| Categories to evaluate with equity method | Opens a page to select the categories or nodes of categories whose data will be considered for the net equity valuation. |
| Advanced | |
| Goodwill | Opens a page to set up the accounts involved in the management of goodwill. |
| P&L accounts to keep | Opens a page to define the accounts on which to keep certain P&L effects on the original accounts (e.g. capital gains). The difference between the P&L net result and the accounts to keep goes on the “Entities at equity profit or loss” account. The accounts to keep must appear in the equity evaluation journal, so they must be subject to equity evaluation. This setting is only considered for data related to consolidation journals. |
| Financial investments accounts to exclude | Opens a page to define the financial investment accounts to be excluded from the equity evaluation. These accounts are normal balance sheet accounts with the Use account for setup field set to Financial investment. |
Page fields
In Revaluation/Devaluation accounts:
| Field | Description |
|---|---|
| Loss account for entities consolidated at equity | Account used as the contra-entry to the losses that make up the P&L result |
| Net result account for entities consolidated at equity | Account used as the contra-entry to the profits that make up the P&L result |
| Generic financial investments account | Used to adjust the financial investment on the equity evaluation journal when the account to be used cannot be reached through the (intercompany) financial statements or entity journals. |
In Advanced:
| Field | Description |
|---|---|
| Entity on which to generate the equity evaluation journals | Specifies the entity to which to attribute the entries. - On Owner entity - Financial investment on Owner entity, net equity and P&L net result on Entity at equity - On Entity at equity, i.e. all equity evaluation entries (financial investment, net equity and P&L net result) are attributed to the entity at equity. |
| Listed entity ownership restriction % | Not used in the equity evaluation data processing but considered in the deployment of the consolidation area if the “calculated” consolidation method is used. |
| Unlisted entity ownership restriction % | |
| Sum up DEST2 in equity evaluation journals | Determines the totalling of the Custom dimension 2 elements if the Relationship Type is set to Entity/DEST2 or Entity/Synthetic DEST2 in the Process’s journal rules. If selected, the DEST2 element code present in the Equity Owner Entities of the consolidation area will be used. If not selected, the entity’s default DEST2 element code will be used. |