User's Manual

Accounting for Acquisitions and Disposals 17-1

Accounting for Acquisitions and Disposals

Overview

Accounting for acquisitions and disposals is a way to tie changes in the consolidation

hierarchy to consolidation entries. Each time a consolidation hierarchy structure

changes, you can associate acquisition and disposal entries to the change.

You can manually enter Acquisition and Disposal entries or generate them through

Acquisition and Disposal rules.

When you run consolidation, Acquisition and Disposal entries are generated in the

Acquisition and Disposal category. Acquisition and Disposal is broken up into four

categories, or types:

• Acquisition

• Disposal

• Share Issue

• Share Issue with Acquisition

An acquisition and disposal transaction has the following parameters.

• From Consolidation Method - The original consolidation method applied to the

relationship.

• To Consolidation Method - The new consolidation method applied to the

relationship.

• From Percentage - The original ownership percentage of the child entity in the

relationship.

• To Percentage - The new ownership percentage of the child entity in the

relationship. For Share Issue with Acquisition, this is the Post Acquisition