Contribution calculations

In the consolidation model some automatic journals are created directly on subgroups, referring to indirect minorities and acquisition calculations when the parent company and the owned company is connected on different levels in the structure. To be able to see the full contribution of each company to the top level, automatic journals created on subgroups need to be distributed to the underlying companies.

Example

This example explains minorities on subgroups:

Figure 1. Minorities on subgroups structure
A graphic that displays how minorities on subgroups are distributed if you use contribution to top level. All companies on the lowest level are summed up into one parent.

In this example, Top group owns 70% of Subgroup 1. A minority of 30% is calculated and booked on Subgroup1. It is not possible to see how much of this minority refers to Company 1, Company 2, or Company 3. The contribution of, for example Company 2 to Top group consists of the contribution to Subgroup 1 and the Company 2 share of the minority (the indirect minority) booked on Subgroup 1.

This example explains Acquisition eliminations on subgroups:

Figure 2. Equity eliminations on subgroups
The graphic displays equity eliminations on subgroups. Parent level 1 is summed to Top parent, while the subsidiaries are summed into Subgroup 1.

In this example, Top parent owns the shares in Parent level 1. The acquisition elimination will be booked on Top parent (shares) and on Subgroup 1 (equity). The equity elimination is not possible to see on Parent level 1. The full contribution of Parent level 1 to Top group should also include this equity elimination.