Ordinary Amortization Goodwill in Group Reporting

[rene_hebenstreit]

Hello Community,

we currently face the situation to replace BCS with Group Reporting. For activity-based CoI, BCS had the possibility to set up an ordinary amortization for Goodwill. So far, I did not see that functionality within Group Reporting settings.

so here is my question:

how to solve the requirement of ordinary amortization of Goodwill within consolidation of investments in Group Reporting?

best regards and thanks in advance

Rene

[bpcconsol27]

I believe that you can do it in S4H 1909 version with Activity based Consolidation feature.

What is the S4H Version on you/company please?

Thanks

Venkat

[rene_hebenstreit]

Hi Venkat,

it actually is 1909. However, when looking into settings (System Utilization C/I) I only see the three methods attached.

so ordinary amortization seems to be missing. This is why I am wondering how to solve that when trying to use activity-based CoI?

best regards

Rene

[dessie]

Hi Rene

Goodwill is not amortised, but is subject to impairment testing at least annually as per IAS 36 requirements. However, this approach may change is the future as a result of IASB ‘Goodwill and Impairment’ project.

IAS 36 requires entities to assess at the end of each reporting period whether an asset may be impaired (IAS 36.9) and provides a list of minimum impairment indicators to be considered (see paragraphs IAS 36.12-17). Irrespective of existence of any impairment indicators, goodwill and intangible assets with an indefinite useful life or not yet available for use must be tested for impairment at least annually (IAS 36.10).

Thanks, Dessie

[bpcconsol27]

Hi Rene

Thanks. Will you please share your BCS C/I configuration settings? because each customer is different config to get the results. I knew what you re looking for.

Want to make sure we both on same page.

You can ping me via private message, so that can exchange emails.

Thanks

Venkat

[bpcconsol27]

Hi Rene

Did you ran the COI process with ABC based? I mean did u configure initial configuration and tested whether you re able to get Goodwill Account posted?

Thanks

Venkat

[rene_hebenstreit]

Hi Venkat,

no, we are not at this point yet, we are still in the configuration part. Goodwill posting will surely work but not the way we are searching for - for an ordinary amortization posting of Goodwill, I somehow need to enter a timespan until which the Goodwill should be fully depreciated (without it the system does not know what automatic posting it should make).

With the three options I see in the configuration window (below), I do not see the possibility to meet the requirements:

• Extraordinary Method - we need to manually adjust the Goodwill every year
• Direct Writeoff - should not be written off directly
• Direct Elimination - should not be eliminated directly

best regards

Rene