Definicja consolidation of investments (FI-LC)

Co znaczy CONSOLIDATION OF INVESTMENTS (FI-LC):

The consolidation of investments (C/I) offsets the investment account of one or more parent companies against each parent company's share in the stockholders' equity of the subsidiaries, joint venture and affiliated companies that are included in consolidation.

This process prevents these assets from appearing "in duplicate" on the consolidated financial statements.

The Consolidation system supports all common consolidation of investments methods.

The following consolidation activities are recognized and performed automatically:

First consolidation Subsequent consolidation Step acquisition Increase or reduction in capitalization Change in indirect investment Transfer within the group Divestiture outside the group Amortization of investments

The consolidation of investments is performed by subgroup. This means that the C/I entries posted for the corporate group do not apply to any subordinate subgroups, in contrast to the elimination of intercompany payables and receivables. Therefore, consolidation of investments must be performed separately for each individual subgroup.