Generate consolidable and Equity evaluation page

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Operational database > Processes tile > select process > > Process setup (Data Processing section) > Consolidation > Basic Consolidation > Generate Contribution > Generate consolidable and Equity evaluation >

Operational database > Processes & Workflow > Processes > select process > > Process setup (Data Processing section) > Consolidation > Basic Consolidation > Generate Contribution > Generate consolidable and Equity valuation >

Purpose of the page

This page allows you to customise data processing that generates the consolidable amount. The procedure for defining the consolidable amount type works in two different ways, depending on the consolidation type of the entities involved:

• If the entities involved are consolidated on a line-by-line or proportional basis, then the data is simply copied from the converted amount type to the consolidable amount type (disregarding the carry forward).
• If the entities involved (or even just one of them, in case of consolidation journals) are consolidated based on equity, then the converted amount type data is subject to the equity evaluation process.

Moreover, CCH Tagetik also defines the category and the consolidation journals. The category must be subject to equity evaluation, or defined in the equity evaluation rules. For consolidation journals, the equity evaluation mode must not be “None” and the “Many to many relationship” option must not be selected. Thus, journals that adjust entities other than those indicated in the header will not be subject to equity evaluation.

Page fields

Field	Description
Accounts and categories
Net equity Accounts	Normal and Details accounts that the system takes into consideration for calculating the value of the Owned entity’s share of the net equity. The contra-entry to the variation of these accounts is allocated on the financial investment account.
Categories to evaluate with equity method	Relationships between the Net Equity variation accounts and the Variation/Detail types of the financial investment account that the system will feed as the contra-entry.
Revaluation/Devaluation accounts
Loss account for consolidated Entity at equity	Account used as the contra-entry to the losses that make up the P&L result
Profit account for consolidated Entity at equity	Account used as the contra-entry to the profits that make up the P&L result
Generic Financial investments account	Account used by the system in the event that it cannot return to the account to be used through the (intercompany) financial statements and entity journals
Advanced
Entity on which to generate the Equity evaluation journals	Establishes the entity for which the equity evaluation journals are entered: owner entity, entity at equity or whether they are divided between the two of them (Financial investment on owner entity, net equity and P&L result on Entity at equity)
Listed Entity ownership restriction %	Percentage ownership indicating whether or not the listed entity should be calculated at equity when the “calculated” consolidation method is being used
Unlisted Entity ownership restriction %	Percentage ownership indicating whether or not the unlisted entity should be calculated at equity when the “calculated” consolidation method is being used
Sum up DEST2 in equity evaluation journals	For Entity/DEST2 or synthetic Entity/DEST2 process report types, this determines the custom dimension 2 on which the equity evaluation journals will be entered. - If enabled, the DEST2 code present in the Equity Owner Entities window will be taken into consideration in the definition of the elements to be consolidated. - If disabled, the default DEST2 code of the entity will be taken into consideration.
Goodwill	It is possible to retain the effect of goodwill in a specific financial investment account when the system evaluates the financial investment/net equity elimination journal using the equity method. The following accounts should be indicated: - Financial investment accounts dedicated to goodwill on which the goodwill effect is reclassified. - Normal, detail and variation accounts used for goodwill.
P&L accounts to keep	P&L accounts to keep in the consolidation journals in the equity evaluation step in order to keep some P&L effects on the original account (e.g. capital gains)
Financial investments accounts to exclude	Normal financial investment accounts, with the field Use Account for setup set to Financial investment, to be excluded from equity evaluation.

For more details, see the .