Will there be eliminations when an entity is no longer consolidated during mid of the fiscal year — Cloud Customer Connect
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Will there be eliminations when an entity is no longer consolidated during mid of the fiscal year

in Financial Consolidation and Close 4 comments

Summary:

We have a scenario wherein a subsidiary entity of a holding company is dis-invested mid-year in period 4 of the financial year with no sale proceeds whatso ever. The ownership % is now changed to 0 with "Not consolidated" method selected in the Manage Ownership ensuring both in Parent/Child and Parent/ Legal hierarchy reflecting the same (this is a multi-level hierarchy)

The Balance sheet data from the subsidiary no longer gets consolidated to the sub consol group and Net income of the subsidiary (for 3 months) gets reversed in the sub consol grp in "Retained Earnings Current – Opening Balance – FX – CTA" account. However, the Investment and Share capital data eliminated historically based on Consolidation configurable rules gets reversed in goodwill offset and share capital account respectively. Also, the total TB of the subsidiary, holding co and sub consol level is balanced.

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