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SEM-BCS: Calculation of goodwill with method change

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SEM-BCS: Calculation of goodwill with method change

Postby fmichler » Thu Apr 26, 2007 9:35 am

Hello there

I am having some challenge with the following business transaction.

An affiliated company changes into a subsidiary company 40% to 80%.
Related to that, goodwill is not calculated properly with our
current setup of the BCS system.

According to the accounting principles (Norwegian GAAP) the net
goodwill is supposed to be calculated under consideration of
different factors which do not seem to apply at all when running
both the PCC and the CoI tasks:

1) Automatic reposting of goodwill depreciation for affiliated
companies for the relevant periods towards goodwill depreciation for
Subsidiary companies

2) Calculation of goodwill amount with respect to "investment/equity
relation" for both "First consolidation" and "Step acquisition" (40%
> 80%) separately, in order to present goodwill net values for both
group and minority interest respectively

3) Another factor which seems to complicate, is the fact that net
income reported for the affiliated company (under Equity Holdings
Adjustment data)is not taken into the calculation base for
determining new goodwill for the subsidiary company (only the
originally posted share capital is)

Has anybody come across a similar set of requirements with the
treatment of goodwill under method change?

Regards.

Frank
fmichler
 
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