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Former Member

BOFC-Procedure to Liqudate the reporting unit

Hi Friends,

I am stuck in the quarter closing for consolidated reserve.

we want to liquidate a reporting unit. so, for this quarter we planned to close the books of that reporting unit.

We have not given any data under closing flow, but explained the numbers in the other flows.

(Closing flow kept empty) - this is effecting the consolidated reserve account.

I need to know how to input the data for the Investment account and for capital account.

Can you Please help me on this as soon as possible, because i have been trying for this from 2 weeks, now I have reached nearby my deadline & have to submit my solution by the end of the day tomorrow.

Thanks in Advance!

Regards,

Anitha

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3 Answers

  • Best Answer
    Oct 26, 2015 at 12:12 PM

    Hello Anitha

    Normally, you control incoming and outgoing units in the Scope (not in package or category)

    You define the ownership at opening and closing. So, your unit would be 100% consolidated at opening, and 0% at closing

    See settings in scope below

    Thanks

    Marc


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    • Former Member

      Hi Marc,

      Thanks for your reply

      I have tried doing as above. I cant not see the reporting unit in the reports.

      If I do this, elimination in Investment accounts are not happening.

      Actually, we wanted to deconsolidate  next period 2016  and so we want to close the books this period. we want to know how to input the data this period in the books of liquidating unit.

      I feel scope setting can be doe next period 2016.

      What to do for this period? how to input date in the liquidate unit?

      For all remaining accounts elimination is happening but there is huge amount in the consolidated reserve. how to do this?

      Please help me on this.

      Thanks in advance!

      Anitha

  • Oct 26, 2015 at 11:41 PM

    Hello Anitha,

    A liquidation leads the subsidiary to exit the consolidation scope and should be therefore not consolidated at closing as Mark explained. The scope outgoing behaviour of the subsidiary will trigger automatic entries needed for exiting entities (for example, reversal of eliminations).

    However if this liquidation happens at the end of September 2015 you should also declare an intermediate data entry period (2015.09) in the incoming/outgoing tab of the subsidiary. This will allow the system to keep the flows you inputed in the September package.

    In 2016 the subsidiary won't show at all in your scope as it closed down previous year.

    The large amounts you see in the consolidated reserve are related to local shareholder's equity of the subsidiary, central manual entries booked on subsidiary reserve or impact of investment elimination of owner company ?

    Regards,

    Olivier

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    • Anitha,

      I think we are reaching the limits of a forum to answer these types of questions.

      If your entity is liquidated for your September 2015 reporting (and not at the beginning of the 2015 year), your closing balance sheet will be zeroed out at the end of September whereas your P&L will be accounted for until the date of liquidation in the consolidation reports.

      Are you able to see the P&L in your reports ? If not, did you specify an intermediate data entry period in the scope (2015.09) for this entity ?

      If you are expecting to see closing value in the balance sheet until december, then it means that your entity is NOT liquidated by the end of September (cf. my message Oct 27, 1:17 PM).

      Regards,

      Olivier

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    Former Member
    Oct 26, 2015 at 01:19 PM

    Hi Marc,

    Thanks for your reply

    I have tried doing as above. I cant not see the reporting unit in the reports.

    If I do this, elimination in Investment accounts are not happening.

    Actually, we wanted to deconsolidate  next period 2016  and so we want to close the books this period. we want to know how to input the data this period in the books of liquidating unit.

    I feel scope setting can be doe next period 2016. 

    What to do for this period? how to input date in the liquidate unit?

    For all remaining accounts elimination is happening but there is huge amount in the consolidated reserve. how to do this?

    Please help me on this.

    Thanks in advance!

    Anitha

    Add comment
    10|10000 characters needed characters exceeded