Net Equities of Subsidiaries and Associated (Balance Sheet) of RUs within the same Consolidation Node must be eliminated if the RUs are consolidated at Global or Proportional Method.
The eliminated amount must be allocated on CONSOLIDATION Reserve (Group and Minorities) and CONVERSION Reserve (Group and Minorities).
This Step executes the elimination of the TBs of those Accounts that have been tagged as Reserve Elimination Y in the layer 10-03. How to setup such Account attribute please refer to Account Settings Section
Set Selections
The Selections are Saved as L10-03 and Opening Select (please refer to Overview Section).
In the following steps the Eliminations happens as -(a) where a is the Conso Value cube (refer to L09) and b is the Conso Value cube (SEL L10-03).
Such amount must then be re-balanced on proper Plug Account. This happens through the "W Conso Value for L10x Elimination (total by Account)" cube that works as "bridge" cube without the Account dimension.
Eliminates the RESERVE (Net Equity) Amounts on RUs (1) All MOVs but DIV Movement
Net Equity Accounts TBs are eliminated (All the Movements but the calculated)
Net Equity Accounts is rebalanced on the Group and Minorities Consolidation Reserve Accounts.
During the re-balancing it is highlighted the contribute given by the Change of Ownership from the PFY to the Current Fiscal Period (month).
Eliminates the RESERVE (Net Equity) Amounts on RUs (2) DIV Movement
Exactly the same logics is applied to the DIV (Dividends) Movement but the Plug Account are the Group and Minorities Retained Earning.
Calculation of the Group and Minorities Conversion Reserve
The Conversion Reserve has been calculated during the Translation Step on L06, and all plugged on the Group Account.
It is then necessary to calculate Minorities.
The Group Conversion Reserve is decreased by the Amount given by the PFY Minorities % (that is switch signed and posted on the Minorities Conversion Reserve) and then adjusted on the CCA (Change in Scope) Movement by the Delta% of Minorities of CFY vs PFY
The same logic is also applied to the PAL (Profit Brought Forward) Movement but the Delta Minorities % effect is plugged on the OCV Movement.