COI Selected items

[Former Member]

In the COI settings for the selected items in 'Statistical Net Income' tab Page

1. Why the net income accounted has to be created as ' Statistical'. Which amount willl be updated to this account.

2. Also a account called 'Minority Interest in Adjusted Net Income - Equity Method ' has to created. Why this account is required at all? Since under equity method there is no minority interest calculation is expected...

or can there be a situation where in an Equity method still MI calculation will be required?

Inputs are appreciated.

[dan_sullivan · Accepted solution]

1. Net income is determined by Equity location of values for subsequent consolidation. In addition, income is stored statistically for the occurance of divestiture or transfer activities. Because with BCS the change in value due to income is not stored in the G/L balances, this is stored to determine the change in value for the calculation of gain/loss upon divestiture or transfer.

2. Minority interest statistical is to exclude from the value, the income for minority owners. This is regardless of the accounting method assigned.