Card functionalities — Eliminations of Equity Investments and Internal Margins in Non-Current Assets

When opening an existing document of this category the document drop-down list only shows those documents where you have read or write access to unit, parent and all allocation units. The unit rights are checked for hierarchy 1 of the selected year and are affected by the value of the CODIM00RIGHTS parameter. When CODIM00RIGHTS=false the unit rights are checked according to DIM00 Structure1. When CODIM00RIGHTS=true, the user has the right to use a unit if having write rights defined either in DIM00 or CODIM00 for any role of which the user is a member.

If the template contains one or more units to which you have "read" but no "write" rights save is not possible and a warning icon appears in the upper part of the screen. The warning is also displayed when the selected period is locked for the selected data type and year.

Overview of Card Functionalities

Overview of eliminations of equity investments

The Eliminations of Equity Investments template is used to enter and manage subsidiary ownerships and changes in them. An elimination of equity investments document is created when the subsidiary is formed, that is, when the group has acquired a share that gives them control over the entity (the ownership usually being at least 50%).

The parent company's acquisition costs and subsidiary's equity must be eliminated every month from the consolidated data until the subsidiary is sold or otherwise no longer consolidated as a subsidiary. Subsidiary acquisition data is saved to its own document, and the default document series is 60000.

The entries of different periods differ, for example, due to depreciations and changes in currency rates.

Based on the data entered to the Basic data and Depr_amort worksheets, the following elimination entries are created:

The carrying amount of the parent unit's investment in the subsidiary
The parent unit's share of the equity of the subsidiary at the time of acquisition
Fair value adjustments/goodwill allocations
Deferred tax assets/liabilities relating to the allocations
Goodwill
Depreciation/amortisation of the allocations according to the plan
Impairment losses and exceptional depreciations on allocated amounts according to the entered changes
Changes in deferred tax balances due to depreciations, amortisations and impairment losses
Accumulated translation differences from the date of the acquisition

Overview of eliminations of internal margins in non-current assets

Internal margins that are activated in the balances of group enterprises are subtracted when compiling the group balance from their corresponding items and equity. The change in internal margins is eliminated from the financial year revenue. Internal margins and their fluctuations are entirely eliminated, independent of the group share in the enterprise that has disposed of or received goods with internal margins.

Based on the data entered to the Basic data and Depr_amort worksheets, the following elimination entries are created:

The sales profit/loss recorded in the unit which sold the asset
Adjustment to asset values (reversal of sales profit/loss)
Deferred tax assets/liabilities relating to the adjustments of asset values
Depreciation adjustments according to the changed depreciation plan (seller vs. buyer)
Changes in deferred tax balances due to depreciations
Accumulated translation differences from the date of the transaction

Basic Data

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. In card functionalities, the are columns for dimenstions DIM00-DIM09 in Acquisition Costs, Acquisition Equity and Allocation areas.

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.

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.

Remember to save the basic data before moving on to Depreciations and Amortisations for Future Periods.

Fields and descriptions:

Basic data

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.

Basic entries

*Acquisition costs in parent currency
- Transaction year: Add the ID of the account for eliminating the acquisition costs in the parent company during the transaction year.
- Other years: Add the ID of the account for eliminating the acquisition costs in parent company during other years than the transaction year.
- Transaction 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
- Transaction year: Add the ID of the account for eliminating the equity of the acquired unit during the transaction year.
- Other years: Add the ID of the account for eliminating the equity of the acquired unit during other years than the transaction year.
- Transaction 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:
- (*) 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.
- (*) 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.
- Defta: 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.

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.

Remember to save the basic data before moving on to Depreciations and Amortisations for Future Periods.

Fields and descriptions:

Basic data

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).

Elimination entries relating to seller's recordings (Income & deferred tax for the sales period)

*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.

Entries to non-current asset values at transaction date (basis for future depreciation adjustments)

*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:
- (*) 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.
- (*) 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.
- Defta: 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.

Depreciations and Amortisations for Future Periods

The depreciation functionality only works when there are 12 normal periods in the system.

Before filling in the depreciations and amortisations data for future periods, make sure that the following data has been filled in on the Basic data worksheet:

Transaction year: Required for calculating the years to be depreciated.
Transaction period: Required for calculating the first period to be depreciated.
Data for allocations 1-n in section Allocations (for example Goodwill and fair value adjustments) (Eliminations of Equity Investments) / Entries to non-current asset values at transaction date(basis for future depreciation adjustments) (Eliminations of Internal Margins in Non-Current Assets).

When the Basic data worksheet is saved, a block is automatically created to the Depr_amort worksheet (the name of the worksheet may be different in your system) for each allocation row on the Basic data worksheet that has a value other than zero in a transaction column.

To fill in depreciations and amortisations data:

Enter the number of years to depreciate (1-50) to the Years to depreciate field in each transaction/allocation block for which you want to create a plan for depreciations.
Save the workbook. The years are generated to the Depreciations by period section and you can hide or show the rows of a depreciation plan by clicking -/+ next to the rows (to hide or show the rows of all depreciation plans, click 1 or 2 in the left top corner of the table).
Fill in the following data for each transaction/allocation block:
1. Current year; P&L Acc (costs): Add the ID of the Profit and Loss account (usually income statement account) used for depreciations recorded to the selected year.
2. Current year; BS Account: Add the ID of the balance sheet account used for depreciations recorded to the selected year.
3. Opening entries; Earnings (costs): Add the ID of the account used for depreciations recorded prior to the selected year (usually opening balance account).
4. Opening entries; BS account: Add the ID of the balance sheet account used for depreciations recorded prior to the selected year.
5. Deferred tax - Current year; P&L Acc (costs) (if Defta is selected in Basic data): Add the ID of the Profit and Loss account (usually income statement account) used for deferred tax depreciations recorded to the selected year
6. Deferred tax - Current year; BS Account (if Defta is selected in Basic data): Add the ID of the balance sheet account used for deferred tax depreciations recorded to the selected year.
7. Deferred tax - Opening entries; Earnings (costs) (if Defta is selected in Basic data): Add the ID of the account used for deferred tax depreciations recorded prior to the selected year (usually opening balance account)
8. Deferred tax - Opening entries; BS account (if Defta is selected in Basic data): Add the ID of the balance sheet account used for deferred tax depreciations recorded prior to the selected year. 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.
Under Depreciations by period, enter the amount to depreciate for each year and period.
Save the worksheet before moving on to Creating Automatic Entries.

Creating Automatic Entries

Automatic entries for eliminations of equity investments are usually created on a monthly basis mainly for reporting purposes.

The Create and Delete options are disabled if the selected period is locked or you have only "read" rights to the selected data type.

Creating entries for currently open document

Select the data type, period, year, and document for which you want to create automatic entries, and refresh the template.
Select Create > Entries for currently open document and period.

Creating entries for all documents of document series

Select the data type, period, and year for which you want to create automatic entries, and refresh the template.
Select Create > Entries for all documents for currently open period.

The entries are created to all documents to which you have sufficient unit rights. A message is shown listing to which documents entries were made and to which documents you do not have sufficient unit rights.

The entries are created if the selected period/year is not before the transaction period/year or later than or same as the end period and year (for example, if the end period is December, no entries are created for December).

The entries (excluding translation difference entries) are converted to the group currency according to the unit currency code and the rates of the period. They are also subject to calculations such as rate difference entries (translation difference entries excluded), calculated accounts, and sum row calculation.

To delete entries from the currently open document, select Delete > Entries for currently open document and period.

To delete entries from all documents of the document series, select Delete > Entries for all documents for currently open period. The entries are deleted from all documents to which you have sufficient unit rights. A message is shown listing from which documents entries were deleted and to which documents you do not have sufficient unit rights.

Entering Manual Entries

In addition to creating entries automatically, you can enter manual entries.

Data can be entered on the Entries worksheet even if the Basic data and Depr_amort worksheets have not been filled in. Before you begin, make sure that the correct data type, year, period, and document have been selected. If you change the options, remember to refresh the template.

To enter manual entries:

In the Unit Code column, enter the ID of an input unit or double-click to open the unit selection list (the selection list opens automatically if you enter an invalid ID). The selection list only contains those units that are connected to the selected data type and year. Unit rights do not apply to the list. Only input units can be added unless otherwise specified in the system settings. The name of the unit is automatically filled in based on the unit ID.
In the Counter Unit Code column, enter the ID of an input unit or double-click to open the unit selection list (the selection list opens automatically if you enter an invalid ID). The selection list contains only those units that are connected to the selected data type and year. Unit rights do not apply to the list. Only input units can be added unless otherwise specified in the system settings. The name of the unit is automatically filled in based on the unit ID.
In the Account Code column, enter the ID of an input account or double-click to open the account selection list (the selection list opens automatically if you enter an invalid ID). The selection list contains only those accounts that are connected to the selected data type. The name of the account is automatically filled in based on the account ID.
In the Position column, type a position number for the entry.
In the period columns, enter cumulative values in unit currency. If the account (or any of its sum accounts) is the source of an automatic rate difference or automatic calculated account definitions, automatic entries for ARD and ACA will be generated.
If you wish, type a comment for the row in the Comment column.
Click (Ctrl+S) to save the data to the database and to run the automatic calculations.

The Input Type column is updated after you save the worksheet. It may show the following values:

ManualEntry for manually entered rows.
AutoCalculation for ARD entries, automatic elimination entries for the elimination of equity investments and automatic elimination entries for the elimination of internal margins in non-current assets. These cells are locked.
Calculated for ACA entries. These cells are locked.

After refreshing the values are shown in group currency in the last columns. You can hide or show the columns by clicking -/+ above the columns or 1 and 2 in the left top corner of the table.