Eliminations of Equity Investments
The difference between the parent company's acquisition costs and subsidiary's equity at the time of acquisition can be recorded as goodwill or allocated to other balance items or the result of the year. The entries allocated to the balance can be recorded through profit and loss statement (for example, as depreciations) during the years following the acquisition, and based on the allocated amounts, deferred tax asset, or liability can be recorded. By default these entries are allocated to the acquired unit. The recordings for periods and years following the acquisition as well as the allocation units may differ depending on the acquisition and the applied reporting practice.
The fields to be filled in on the Basic data worksheet are listed below (the name of the worksheet may be different in your system). Only the white cells in the template can be modified, and fields marked with an asterisk * in the list are mandatory. The document can be saved if mandatory values are missing, but mandatory values are required when creating the entries.
Note! The basic data of the document is common for all data types. Only the entries are data type -specific. When entering the basic data, you can only define units and accounts that are connected to the currently selected data type. If you select another data type when creating entries, entries are not created to those accounts that are not connected to the data type. If there are units in the basic data that are not connected to the data type, no entries are created for the document.
To add an empty column for new a transaction, select Insert > Column on the Home tab. The column is added after the last transaction column. Up to 20 columns can be added.
Note! Remember to save the basic data before moving on to Depreciations and Amortisations for Future Periods.
Fields and descriptions:
•Comment/description: Add a description for the transaction in the Transaction columns. Maximum length: 255 characters. •*Acquired Unit: Add the ID of the acquired unit (subsidiary). Enter the ID directly to the field or double click to open the unit selection list. The selection list also opens automatically if you enter an invalid ID. The selection list contains the units (according to the first hierarchy) to which you have "write" rights and which are connected to selected data type and year. Only input units can be added unless otherwise defined in the system settings. The name of the unit and its currency (of the selected year) are automatically filled in. •*Parent: Add the ID of the acquiring unit (parent). For more information, see above. •Allocation unit: Add the ID of an allocation unit (for more information, see above). •Tax %: Add the tax percent for the acquired unit, parent unit and allocation unit(s). One decimal can be used. •*Rate at transaction date (in the Transaction column): Add the exchange rate of the currency used by the acquired unit, parent unit, and allocation unit(s) at the time of acquisition. Four decimals can be used. •*Transaction period: Add the ID of the period of acquisition in the Transaction columns. •*Transaction year: Add the ID of the year of acquisition in the Transaction columns. •*Portion (%) Acquired (sold (-)): Add the percentage of the acquired/sold shares in the Transaction columns. Four decimals can be used. •End period: Add the ID of the period starting from which entries are not created anymore in the Transaction columns. •End year: Add the ID of the year starting from which entries are not created anymore in the Transaction columns. •Opening balance: Add the ID of the account for the accumulated translation difference. Enter the ID directly to the field or double click to open the account selection list. The selection list also opens automatically if you enter an invalid ID. The list contains the input and rate difference accounts that are connected to selected data type. •Change during the year: Add the ID of the account for the current year's translation difference. For more information about adding the ID, see above. |
•*Acquisition costs in parent currency oTransaction year: Add the ID of the account for eliminating the acquisition costs in the parent company during the transaction year. oOther years: Add the ID of the account for eliminating the acquisition costs in parent company during other years than the transaction year. oTransaction columns: Add the value of the acquisition cost or disposal gain in the parent company (2 decimals can be used). The value is cumulative in parent currency. •*Total equity at acquisition date in unit currency oTransaction year: Add the ID of the account for eliminating the equity of the acquired unit during the transaction year. oOther years: Add the ID of the account for eliminating the equity of the acquired unit during other years than the transaction year. oTransaction columns: Add the value of the equity for the acquired unit (2 decimals can be used). The value is cumulative in the acquired unit's currency. |
 | Allocations (for example goodwill and fair value adjustments) (to be filled in if acquisition cost and equity are not the same) |
•*Transaction year: Add the ID of the account used for the allocation in the transaction year. •*Other years: Add the ID of the account used for the allocation in other years than the transaction year. •Deferred taxes accounts: o(*) Transaction year (mandatory if Defta is in use; see below): Add the ID of the account used for the deferred tax in the transaction year. o(*) Deferred taxes accounts: Other years (mandatory if Defta is in use; see below): Add the ID of the account used for the deferred tax in other years than the transaction year. oDefta: Enter "x" if you want the deferred tax to be calculated. •*Unit: Add the ID of the unit for which the allocation is posted. The unit is usually the acquired unit, but it can also be the parent unit or an allocation unit. •*Counter unit: Add the ID of the counter unit for which the allocation is posted. The unit is usually the parent unit, but it can also be the acquired unit or an allocation unit. •*Transaction column(s): Add the allocation cost in the currency of the unit. |
Eliminations of Internal Margins in Non-current Assets
The fields to be filled in on the Basic data worksheet are listed in the table below (the name of the worksheet may be different in your system). Only the white cells in the template can be modified, and fields marked with an asterisk * in the table are mandatory. The document can be saved if mandatory values are missing, but mandatory values are required when creating the entries.
Note! The basic data of the document is common for all data types. Only the entries are data type specific. When entering the basic data, you can only define units and accounts that are connected to the currently selected data type. If you select another data type when creating entries, entries are not created to those accounts that are not connected to the data type. If there are units in the basic data that are not connected to the data type, no entries are created for the document.
To add an empty column for new a transaction, select Insert > Column on the Home tab.
The column is added after the last transaction column. Up to 20 columns can be added.
Note! Remember to save the basic data before moving on to Depreciations and Amortisations for Future Periods.
Fields and descriptions:
•Comment/description: Add a description for the transaction in the Transaction columns. Maximum length: 255 characters. •*Buyer: Add the ID of the buyer unit. Enter the ID directly to the field or double click to open the unit selection list. The selection list also opens automatically if you enter an invalid ID. The selection list contains the units (according to the first hierarchy) to which you have "write" rights and which are connected to selected data type and year. Only input units can be added unless otherwise defined in the system settings. The name of the unit and its currency (of the selected year) are automatically filled in. •*Seller: Add the ID of the seller unit (for more information, see above). •Allocation unit: Add the ID of an allocation unit (for more information, see above). •Tax %: Add the tax percent for the buyer, seller and allocation unit(s). One decimal can be used. •*Rate at transaction date (in the Transaction column): Add the exchange rate of the currency used by the buyer, seller, and allocation unit(s) at the time of acquisition. Four decimals can be used. •*Transaction period: Add the ID of the period of acquisition in the Transaction columns. •*Transaction year: Add the ID of the year of acquisition in the Transaction columns. •End period: Add the ID of the period starting from which entries are not created anymore in the Transaction columns. •End year: Add the ID of the year starting from which entries are not created anymore in the Transaction columns. •Opening balance: Add the ID of the account for the accumulated translation difference. Enter the ID directly to the field or double-click to open the account selection list. The selection list also opens automatically if you enter an invalid ID. The list contains the input and rate difference accounts that are connected to selected data type. •Change during the year: Add the ID of the account for the current year's translation difference (for more information, see above). |
•*Transaction year: Add the ID of the account for eliminating the acquisition costs during the transaction year. •*Other years: Add the ID of the account for eliminating the acquisition costs during other years than the transaction year. •*Transaction column(s): Add the value of disposal gain/loss (2 decimals can be used). The value is cumulative in the buyer unit's currency. |
•*Transaction year: Add the ID of the account used for the allocation in the transaction year. •*Other years: Add the ID of the account used for the allocation in other years than the transaction year. •Deferred taxes accounts: o(*) Transaction year (mandatory if Defta is in use; see below): Add the ID of the account used for the deferred tax in the transaction year. o(*) Deferred taxes accounts: Other years (mandatory if Defta is in use; see below): Add the ID of the account used for the deferred tax in other years than the transaction year. oDefta: Enter "x" if you want the deferred tax to be calculated. •*Unit: Add the ID of the unit for which the allocation is posted. The unit is usually the buyer unit, but it can also be the seller or an allocation unit. •*Counter unit: Add the ID of the counter unit for which the allocation is posted. The unit is usually the seller unit, but it can also be the buyer or an allocation unit. •*Transaction column(s): Add the amount of internal margin in the currency of the unit. |