User's Manual

Setting Up Consolidation Rules 9-9
Step 2: Eliminate Subsidiary Equity
In step 2, the Japan's equity is eliminated. Since Japan is not fully owned, the portion of
equity not owned will be calculated in step 3. The rule step finds any balances in the
source entity whose Line Item is 3000 - Equity and creates a consolidation entry that is
equal to those balances. Since a target line item is not specified, the consolidation entry
is written to the same line item as the source, 3000 - Equity.