Topic
5 replies Latest Post - ‏2010-10-01T11:35:59Z by paulyoungcga
SystemAdmin
SystemAdmin
41 Posts
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Pinned topic Associated companies (equity method according to IFRS)

‏2009-06-08T12:01:25Z |
Hi!

Do you have some kind of best practise for associated companies in Controller 8.4? Below is information on equity method.
How to use different elimination tables and consolidation method E in this situation?

Equity method: A method of accounting by which an equity investment is initially recorded at cost and subsequently adjusted to reflect the investor's share of the net profit or loss of the associate (investee).

Thanks in advance!
Updated on 2010-10-01T11:35:59Z at 2010-10-01T11:35:59Z by paulyoungcga
  • Paul_Allen
    Paul_Allen
    13 Posts
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    Re: Associated companies (equity method according to IFRS)

    ‏2009-06-08T15:22:57Z  in response to SystemAdmin
    You need to use a combination of automatic journals E100, E110, E210 and E500.

    I recommend recruiting the assistance of an expereinced consultant if you are a client.

    I have, however, attached a simple example of what each journal does.
    • SystemAdmin
      SystemAdmin
      41 Posts
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      Re: Associated companies (equity method according to IFRS)

      ‏2009-06-09T20:38:19Z  in response to Paul_Allen
      Hi Paul!

      Thanks for your reply. Your guidance really helped and now associate companies work as they should!

      Br, Jussi
    • Dhims
      Dhims
      2 Posts
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      Re: Associated companies (equity method according to IFRS)

      ‏2010-07-08T16:02:11Z  in response to Paul_Allen
      Hey, i have seen the above file. this example represents when Investment is equal to share of net worth (i.e. 700). I would like to know what if investment is more or less than share capital. In other words, how to handle goodwill or capital reserve.

      Thanks in advance.
      • paulyoungcga
        paulyoungcga
        2 Posts
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        Re: Associated companies (equity method according to IFRS)

        ‏2010-10-01T11:35:59Z  in response to Dhims
        There are several documents available on the DeveloperWorks site around automatic journals.

        http://www.ibm.com/developerworks/views/data/libraryview.jsp?sort_order=1&product_by=Cognos&search_by=cognospp%20financial%20management&sort_by=Title&sort_order=1&count=100&topic_by=All%20Topics&search_flag=true&show_abstract=true