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Equity Pick up Rule in FCCS — Cloud Customer Connect
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Equity Pick up Rule in FCCS

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edited Jun 17, 2019 1:34PM in Financial Consolidation and Close 3 comments

Summary

Equity Pickup Calculation for First Period

Content

Hello Gurus,

We were trying to use the equity pick up rule in FCCS and facing below issue in first period calculation.

In first period, Equity pick up is calculated by applying the ownership% at Total Equity account. whereas the treatment for existing investment at historical cost is not considered at time of calculating the equity pickup adjustment.

Below is the example:

A Consolidated (Parent)
    Company A (Holding)
    Company B (Subsidiary -60%)
    
In Book of Company A, Investment has been recorded at 4million.

Total Equity of Company B is 10Million.

System is calculating the Equity pick up Adjustment at first period is 6million. whereas as per my understanding this should be only 2million.

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