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ICP Eliminations in case a company/intercompany is acquired/gets disposed

edited Feb 28, 2020 11:39AM in Financial Consolidation and Close 1 comment

Summary

Wish to have advises about how to treat the case

Content

Dear All,

when a company/intercompany gets disposed/acquired (in other words, when a company/intercompany consolidation method changes from subsidiary to any other or viceversa), we would expect:

1. Acquisition: all pre-acquisition ICP balances involving the acquired company (both as an entity and as an ICP) start to be eliminated;

2. Disposal: all pre-disposal ICP eliminations occurred in the past (and re-opened periodically) should be diverted in order to avoid they still contribute to the consolidated results;

as per our experience with FCCS, these two cases are not natively covered (please refer to the attached .jpg. LE004 is a subsidiary both in Jan and Feb; LE003 is subsidiary in Jan and gets "not consolidated" in Feb; on the contrary LE005 is not consolidated in Jan and gets subsidiary in Feb).

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