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SAP BUSINESSOBJECTS PLANNING AND


CONSOLIDATION 10.0, VERSION FOR SAP NETWEAVER
STARTER KIT FOR IFRS
Configuration Design









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Copyright
2011 SAP BusinessObjects. All rights reserved. SAP BusinessObjects and its logos,
BusinessObjects, Crystal Reports, SAP BusinessObjects Rapid Mart, SAP BusinessObjects Data
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their respective owners.

2011-06-20

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Design Documentation

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Contents
INTRODUCTION ....................................................................................... 4
1. Document Objective ..................................................................................................... 4
2. Legend ..................................................................................................................... 4
A. DESIGN PRINCIPLES BY BUSINESS REQUIREMENT ........................................ 5
1. General Reporting Principles........................................................................................... 5
2. Segment Reporting ..................................................................................................... 11
3. Consolidation Principles .............................................................................................. 12
4. Journal Entries ......................................................................................................... 20
5. Periodic Figures Management ........................................................................................ 39
6. Financial Statements for Statutory Publication .................................................................. 40
7. Data Consistency Controls ............................................................................................ 43
8. XBRL Publishing ......................................................................................................... 45
9. Working Languages .................................................................................................... 46
10. Security and business workflows .................................................................................... 46
B. CONFIGURATION OVERVIEW ...............................................................49
1. Models .................................................................................................................... 49
2. Dimensions Consolidation model .................................................................................. 49
3. Configuration Specific Dimension Properties ..................................................................... 50
4. Default Script Logic Calculations .................................................................................... 50
5. Manual Journal Entry script logic: Journal.lgf .................................................................... 50
6. Eliminations and Adjustment Rules ................................................................................. 51
7. Balance Carry Forward ................................................................................................ 52
8. Input forms and Reports Configuration Principles................................................................ 52
9. Security settings by team of users .................................................................................. 55
C. APPENDIX ......................................................................................57
1. Default.lgf Script Logic ............................................................................................... 57
2. Input form - Example of F15-Net Variation Control .............................................................. 59
3. Example of FLOWAN Property Values .............................................................................. 59
4. Journal.lgf Script Logic ............................................................................................... 60
5. CopyOpening.lgf logic script ......................................................................................... 61
6. Carry Forward Rules ................................................................................................... 62
7. Elimination and adjustment Rules .................................................................................. 63
8. Naming Convention for Method-based Multipliers ................................................................ 64
9. UJ_VALIDATION Settings .............................................................................................. 65
10. First Consolidation Process ........................................................................................... 65

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Introduction
1. Document Objective
This document describes how the SAP BusinessObjects Planning and Consolidation 10.0 starter
kit for IFRS on SAP Netweaver was designed. The first chapter is divided into business topics; for
each topic the design principles are explained as a response to the related user requirements.
The second chapter summarizes the configuration objects mentioned in the first chapter by
product area. Appendices available in chapter 3 are screenshots and scripts referenced in the
first two chapters, which provide more details about the contents of scripts, business rules, and
dimensions. Specific operating processes are also explained in this chapter.
Before you attempt to change the configuration, we highly recommend that you read this
document thoroughly, in order to understand how configuration objects interact in the solution,
and how to enhance the starter kit in accordance with the way it was designed, when adapting
the starter kit to project specific requirements.

2. Legend


Objectives / Requirements

Design principles

Consequences on the operating process

Warning

Database diagram

Accounting diagram
Blue italic Leveraged Planning and Consolidation product feature
Italic Name of the configuration object in the starter kit


Design Documentation

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A. Design Principles by Business
Requirement
1. General Reporting Principles
1.1. Reporting Cycle

The starter kit for IFRS is designed to support a full consolidation scenario for actual data.
The reporting cycle encompasses preparatory tasks, data entry tasks, consolidation tasks,
and data retrieval through a library of reports.





For the successive consolidation reporting cycles, instances of the BPFs listed above are
identified by the Actual Category ID.

1.2. Accounting Principles
1.2.1. Financial Standards

Reported data is consolidated according to IFRS. Local data can be collected following IFRS,
or in local GAAP, and subsequently adjusted to IFRS in input forms.


The consolidation scenario is built for actuals and is divided into 4 main Business Process
Flows (BPF):
Preparatory tasks: Maintain exchange rates, consolidation scope, and run copy
opening balances
Data entry: Load files or manual entry of balance sheet, income statement,
breakdown by movement and intercompany. Run data validation and data
submission.
Consolidation tasks: Run preliminary checks, post manual journal entries, run
consolidation, check the consolidation dashboard, view annual reports
Reports library: Annual reports, analysis reports, accounting reports, control reports
The Data entry tasks BPF is designed for local users whereas Preparatory tasks and
Consolidation tasks BPFs are designed for central users. One consolidation process is
defined for all consolidation frequencies (monthly, quarterly).
The consolidation data is stored in a consolidation-type model named CONSOLIDATION. An
ACTUAL category ID is created and used for that purpose.
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Local data is stored on the INPUT audit ID
1
(audit-type dimension). Subsequent local
adjustments in input forms are stored on the INPUT11 audit ID
The user can select the audit ID in the EPM context of input form. Thanks to a specific Data
Access Profile, (named Entry level) only Input audit IDs (base members of
ALL_INPUT) can be selected by local end users.
It is therefore possible to dynamically enhance the list of local restatement audit IDs
available in input forms by assigning the same property value and hierarchical node to the
new audit ID(s).

1.2.2. Income Statement

The Income Statement is disclosed by function.
1.3. Reporting Indicators

The chart of accounts is built in a way that makes it possible to map accounts with IFRS
taxonomy items.
More details on publishing under the XBRL format with the starter kit is supplied in 8 page
45.
1.3.1. Reference indicators
1.3.1.1. Financial Statement items

Reference indicators include balance sheet (BS) accounts and income statement accounts
(IS).
The Statement of Financial Position or Balance Sheet (BS) - distinguishes between the
following items:
Non-current / current items
2

Gross values / depreciation and impairment / net values
The Income Statement (IS) is composed of the following blocks of accounts:
Operating profit
Financial result
Tax (Current and deferred)
Profit (loss) from discontinued operations



1
Audit IDs are described in A.4.1.5 page 24
2
In accordance with IAS1 Financial Statements
Design Documentation

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The requirements regarding the Statement of Cash Flows, the Statement of Changes in
Equity, and the Statement of Comprehensive Income are detailed in chapter 6 page 40.


Structure of the Chart of Accounts
The chart of accounts is organized into hierarchies. Accounts are always included in a
parent member account by populating the PARENTH1 field in the ACCOUNT dimension.
The following hierarchies are defined:
Balance sheet: includes Asset accounts (Axxxx), Equity accounts (Exxxx) and
Liability accounts (Lxxxx)
Group Income: includes all P&L accounts (Pxxxx)
Codification
The codification principle allows the user to do the following:
identify the account type (A = Assets, E = Equity, ) and subtype (for the second
digit 1 = Non-current item and 2 = Current item).
sort accounts in logical order in reports notably in the balance reports (assets base
members, equity and liabilities base members)
In addition, for total accounts, the suffix T allows the user to distinguish between total
accounts and leaf-level accounts.

1.3.1.2. Balance Sheet Movements

In order to be able to calculate the Statement of Cash Flows items and to produce the
Statement of Changes in Equity, changes in the BS items are captured or calculated as
follows:
For current assets and liabilities (Gross value), the net variation is calculated and
displayed in input forms
For other BS accounts, a detailed analysis of movements is required
Specific operations are identified separately for all BS accounts: Reclassification,
Changes in accounting policies, Internal mergers (transfer of BS accounts from the
acquired to the acquiring company in case of an internal merger)
Opening balances are automatically calculated from the closing balance of the
previous year.

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Using a FLOW Dimension
The FLOW dimension (Subtable type) is used to detail the value change between the
opening balance (F00) and the closing balance (F99) for balance sheet accounts. All flows,
excluding F99, are included in a parent member Closing-Calculated (END) in order to:
Easily check that the sum of the opening balance and the period movements equal
the closing position in reports (END = F99)
Dynamically select the opening flow and the movement flows in reports
Account / Flow Combinations
The following common flows are valid for all BS accounts:
Positions: F00-Opening, F99-Closing
Specific flows (except for some equity accounts): F50-Reclassification, F09-Change
in accounting policies, F70-Internal mergers
Additional relevant flows depend on the account. This link is defined in the FLOWAN
account property (See Appendix 3). This property is used to stripe cells that correspond
to inconsistent account-flow crossovers in input forms.
For P&L accounts, only flow PL99-Closing is used.
Flow Calculations and Controls
For all BS accounts, the net variation (i.e. closing balance [opening balance + specific
flows]) is calculated in flow F15-Variation. This calculation is included in the default
script logic, which enables a real time calculation as and when data is input / imported
at local level. (See Appendix A.1).
For non-current accounts, the net variation must be distributed on relevant flows in the
corresponding input form. When saving new values, the variation flow (F15) is calculated
again and must be zero in the form. The controls are performed during the data
validation via specific controls rules. The flow F15 is then highlighted in input forms
(see Appendix 2).
For current accounts (excluding provision and allowance accounts) the net variation
amount is not distributed on flows and remains on the net variation flow (F15).
Two preventive data entry controls have been inserted in the NetWeaver backend
through the UJ_validation transaction. They prevent the user from entering or importing
data on the Profit and Loss flow (PL99) for Balance Sheet accounts on the one hand, and
from entering or importing data on the Balance Sheet closing Flow (F99) for Profit and
Loss accounts on the other hand (see Appendix Error! Reference source not found.).
For more information on this feature please refer to the Planning and Consolidation on
Netweaver documentation.

Opening Balances
For input data, the calculation of opening balances is executed centrally by using the
CopyOpening Data Management Package with the Carry Forward Rules. (See 4.1.1 page
20).

Design Documentation

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Reminder Input audit IDs: Input data is identified by the members of the audit ID
dimension with the property DATASRC_TYPE = I (Input). More information regarding this
dimension is available in 4.1.5 page 23.

1.3.1.3. Focus on Equity Accounts and Equity Specific Movements

The Statement of Financial Position does not distinguish between accumulated retained
earnings of prior periods and the net income of the current period.
At local level, the following equity movements are captured:
Net income of the period: calculated from the P&L accounts
Total dividends paid (internal and external)
Subscription to capital


The appropriation of retained earnings is disclosed on one single account: E1610 Retained
earnings. The following equity-specific flows are created:
F10 Net income of the period: is automatically calculated by the Default script
logic (for audit IDs defined with DATA_SRC=I), or included in the Journal.lgf script
for manual journal entries. Both scripts enable a real time calculation. (See
Appendix 1 and appendix 4)
F06 Dividends
F40 Subscription to capital
F20, F30 and F55 are also associated with relevant equity accounts such as Treasury shares
to capture the increase or decrease in values or fair value adjustments.


F00 F99 F06 F10 F40
Opening
position
Closing
position
Dividends Net income
Subscription to
capital
E1110 Issued capital
E1210 Share premium
E1310 Treasury shares
E1510 Revaluation surplus, before tax
E1511 Income tax on revaluation surplus
E1520 Actuarial G&L, before tax (suspense acc.)
E1521 Income tax on actuarial G&L (suspense acc.)
E1540 Hedging reserve, before tax
E1541 Income tax on hedging reserve
E1550 Fair value reserve, before tax
E1551 Income tax on fair value reserve
E1570 Equity component of compound fin. Inst.
E1610 Retained earnings

= P&L

E199T Equity attributable to owners of parent
Legend:
Input




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1.4. Sign Convention

In order to fully leverage the softwares data storage engine as well as the calculation
engine of total accounts, the following rules apply to closing balances:
Assets: gross values are entered as positive amounts; amortization and depreciation are
entered as negative amounts
Equity and liabilities: amounts are entered as positive amounts
Income Statement: revenues and expenses are entered as positive amounts.

Assets Amortization &
Depreciation
Equity &
Liabilities*
Income Expenses
Entry + - + + +
Display 100 (100) 100 100 (100)

In addition to the sign logic defined for accounts, flows use the following rules:
Assets Equity & Liabilities*
Gross values Amortization &
Depreciation
Increase Decrease Increase Decrease Increase Decrease
Entry + - - + + -
Display 100 (100) (100) 100 100 (100)
*Except Treasury shares, for which the logic is reversed.


The account dimension is defined with the ACCTYPE property. Thanks to this property,
values are automatically recorded with the appropriate sign for the account.
Accounts are defined with the following ACCTYPE values:
AST: Asset accounts (gross value, depreciation, impairment). Default sign is positive
(debit). Entry values must be negative for depreciation and impairment
LEQ: Liability and equity accounts. Default sign is negative (credit)
INC: Income accounts. Default sign is negative (credit)
EXP: Expense accounts. Default sign is positive (debit)
As explained before, income and expenses are entered as positive amounts. To ease the
readability of the Income Statement, a particular value format applies to expense
accounts: values are shown in negative though they are entered as positive.
To calculate values on parent members (total accounts), the ACCTYPE property is also
taken into account. The calculated value will be displayed following the ACCTYPE property.

Design Documentation

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2. Segment Reporting

Income Statement, Assets and Liabilities by Segment
Segment reporting is built by entity aggregation, which implies that each entity belongs to
only one segment. The scenario where a legal company belongs to several segments is
supported by splitting legal companies into operating entities which report IS items and
operating assets and liabilities, and non-operating entities which report non-operating
items such as equity, tax and investments.


In terms of data entry, one BPF instance is created per entity, i.e. business unit. In
order to balance BS and IS for all entities (operating and non-operating) that compose a
company, two balancing accounts have been defined:
L26BL-Balancing account - Balance sheet
P22BL-Balancing account - Income statement
Example:




Intragroup/Intergroup intercompany eliminations
In the starter kit, segment reporting is built by entity aggregation. The starter kit does not
provide intragroup/intergroup intercompany elimination feature.



Non Operating Operating
Segment A
Operating
Segment B
Total company
(no intra
elimination)
Assets
Fixed assets 500 100 200 800
Cash 200 200
700 100 200 1000
Equity & Liabilities 0
Equity 300 300
Net Income 40 60 100
Net Income-Balancing 100 -40 -60 0
Debts 100 400 100 600
B/S-Balancing 200 -300 100 0
700 100 200 1000
Income Statement 0
Net Income of the period 40 60 100
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3. Consolidation Principles
3.1. Foreign Currency Conversion

The Income Statement accounts are converted using the average rate of the reporting
period.
Accounts in the Statement of Financial Position are converted using the period-end rate,
excepted investments and equity accounts which are maintained at their historical
acquisition value. BS movements are translated using average rate.
For equity accounts, the currency translation differences are recorded in a dedicated
account in the reserves.
As some transaction values need to be converted at a specific rate, such as dividends
distribution and the balance sheet position of incoming units, the definition of currency
rate per company is required.
All values are translated cumulated, meaning that the year to date value for the
closing period is translated using the rate of the same closing period.
The above currency conversion rules also apply to accounts for additional analyses.


Rates Definition and Rate Input form
The following RATES are defined and must be entered in the RATES model:
AVG: average rate
END: closing rate
DIV: dividends rate
The RATES model includes the RATEENTITY dimension which allows the consolidation
manager to input specific currency rates for a given company. This dimension is initialized
in the Rate web input form. It contains the following members:
GLOBAL member, against which the default rates by input currency must be input;
it is therefore initialized in the context of the input form.
Members that correspond to entities to which a specific rate must be applied and
which therefore have identical identifiers (IDs). These members can be inserted as
appropriate by the central user in the input form.
The currency conversion rules apply the specific rate for one entity if such a rate exists. If
not, it will default to the general currency rate input on the GLOBAL member.


Design Documentation

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Reminder: Entering Specific Rates by Entity
In order for the conversion engine to apply specific rates by entity, it is necessary to input
the specific rate for the entity (RATEENTITY dimension) not only against its respective local
currency (INPUTCURRENCY dimension) but also against the consolidation currency, for
example EUR or USD (INPUTCURRENCY dimension). This is because the conversion engine
will not refer to the default rate stored on the GLOBAL RATEENTITY member in the case of
a specific rate for one entity.
Example:






Rule definition
The currency conversion rules are configured by using the RATETYPE property of the
ACCOUNT dimension in order to associate groups of accounts to identical conversion
behaviors.

Accounts General translation rule RATETYPE
Property
IS accounts Average rate (AVG) AVER
BS accounts (closing
balance) translated using
the closing rate
Closing balance: closing rate (END)
Movements: average rate (AVG)
CTA calculation on flow F80 account by
account
AVNEND
Equity accounts Maintained at their historical value: opening
balance is not changed (AS_IS formula), other
movements are translated using their
respective rate (AVG, DIV, END, OPEND).
The ForceClosing Option is used so that the
converted closing position equals the sum of
converted flows.
CTA calculation on flow F80 of the currency
conversion reserve account E1560.
HIST_EQ1
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Currency translation
account (E1560)
The opening balance is maintained at the
converted value of the prior year end (AS_IS
formula)
HIST_EQ6
Investment accounts Closing balance: closing rate (END)
Movements: average rate (AVG)
CTA calculation on flow F80
Consequently, the general principle applied to
investments is identical to the one used for
other BS accounts. In addition, this conversion
rule populates the YA1810C off balance
account which stores the cumulated value of
the currency translation effect on investments
over time.
HIST_INV
Off balance Goodwill
declaration accounts:
Bargain purchase

Closing balance: closing rate (END)
Movements: average rate (AVG)
HIST_GW
Off balance Goodwill
declaration accounts:
- Goodwill Gross Value
- Goodwill Impairment
(Partial and Full Goodwill)
The same principle as the one defined for the
investment accounts is applied to the
goodwill.
HIST_GWGV
HIST_GWGVN
HIST_GWIM
HIST_GWIMN

The FLOW dimension DIMLIST_CONV_SEL property is also leveraged in the currency
conversion rules in order to dynamically associate groups of flows to one given
conversion behavior within one account set associated with one RATETYPE property.
Flows Property
SUBTABLES_ORIG
Flows translated using the closing rate of the previous period S_CONV_OP
Flows translated using the average rate S_CONV_AV
Flows translated using the dividends rate S_CONV_DIV
Flows translated using the closing rate S_CONV_END
Currency Translation Differences
For equity accounts, the currency difference resulting from the translation of movements
at specific rate (historical, average, opening) is recorded in a dedicated equity account
E1560 on flow F80-Foreign exchange gain/loss.
For other BS accounts, the currency difference resulting from the translation of movements
at average rate, and the translation of closing balance at closing rate, is recorded in the
original account on flow F80-Foreign exchange gain/loss.
Design Documentation

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Audit ID behavior Regarding Conversion
The currency translation process applies only to audit IDs identified by the Y value of the
IS_CONVERTED property. Consequently this value has been assigned to audit IDs intended
for input and adjustments in the starter kit.
Technical Accounts for CTA Cumulative Value
For investment and goodwill accounts, technical accounts are used to store the cumulated
conversion differences as a source amount to be subsequently reclassified from
consolidation reserves to conversion reserves as part of the CTA automatic entry. (See A.
4.3.6, Currency Translation Adjustment (CTA))



First consolidation: conversion and cumulative CTA
As explained above, equity accounts are translated using the historical value method (AS_IS
formula). When running the consolidation for one given consolidation scope for the first
time in the application, the historical values of these accounts must be recorded as well as
the cumulated amount of the conversion reserves as part of the preparatory tasks. This can
be done in either following ways:
By importing the converted opening balance on the opening flow directly at
converted level on a technical prior year-end time period used for opening data,
and defining entity-specific exchange rates for this technical consolidation; the
opening rate, the average rate and the closing rate should be identical so that no
currency conversion difference is computed on this time period;
By posting a journal entry to return to the historical translation amount.
The detailed procedure is available in the starter kit operating guide and in appendix (see
10.2, Equity Conversion and CTA on page 65).

3.2. Consolidation Type

The starter kit follows the direct consolidation approach where entities are attached
directly to the main parent company of the consolidation perimeter.
A sub-consolidation input framework is defined for entities consolidated with the equity
method.


In the CONSOLIDATION model, consolidation accounts (such as Goodwill, or Non-controlling
interests), and consolidation flows (such as Change in consolidation method, Change in
consolidation rate) are not available in input forms associated with the standard data entry
BPF intended for standard reporting entities.
Consolidation accounts are filtered by using the UPROFILE property in the Member
selector: accounts having the value 2CONSO for the UPROFILE property will not be
available in input forms.
Consolidation flows are assigned with the EQM value for the FLOW_DOC property. This
value is not initialized in forms intended for standard reporting entities.
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Sub-scope Management
The Planning and Consolidation consolidation engine natively handles sub-consolidations,
that is consolidations of groups hierarchically organized into scopes and sub-scopes. The
prerequisites are as follows:
Consolidation perimeters organized hierarchically via the PARENT_GROUP property
Entities attached to sub-scopes or directly to the top scope in the Ownership
Manager
The following options must be activated so that the aggregated amounts of possible sub-
consolidations are stored in the fact table:
STORE_ENTITY property set to Y (Yes)
ENTITY property set to a dedicated entity ID which the aggregated value of the
scope and sub-scopes should be recorded onto
An example is given in the starter kit with the ALL_ZONES top consolidation perimeter.
However no consolidation was executed and validated for this perimeter.
3.3. Consolidation Methods and Rates

The following consolidation methods are supported in the starter kit:
Full method (purchase method)
Proportional method
Equity method
The consolidation process uses the following rates:
Consolidation rate
Ownership rate
The consolidation perimeter is entered manually. The starter kit does not include any
process for determining the consolidation method by entity automatically, nor calculating
the consolidation rate and financial interest rate.


OWNERSHIP Model
Consolidation methods and perimeter rates are stored in the OWNERSHIP Model. They are
used to define the consolidation perimeter via the Ownership Manage.
The list of available consolidation perimeters is maintained in the group-type dimension
named ConsoScope.
Methods
The consolidation methods defined in the starter kit are the following:
Holding (Main Parent). [Method ID=111]
This method must be assigned to the consolidating company for which no equity
elimination is booked.
Full (Purchase method) [Method ID = 100]
Proportional [Method ID = 50]
Equity [Method ID = 20]
Design Documentation

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Rates
The rates used correspond to the following ownership accounts (OWNACCOUNT) in the
OWNERSHIP model:
PCON Consolidation rate
POWN Financial interest rate (group share)
These rates are defined with the property IS_INPUT=Y.
Proportional Method
All amounts reported by companies consolidated using the proportional method are reduced
to correspond to the consolidation rate.
Example:
A company reports Revenues for 1000 . This company is consolidated using proportional
method and a consolidation rate of 40%.
Amount Audit ID
Reported value 1000 INPUT
Apportionment -600 MTH_PRO
Apportioned value 400 PROPORT

The MTH_PROP Method-based Multiplier is defined to proportionate the reported values by
cancelling the non-group amount (formula: 1-PCON). This apportionment is identified by
the MTH_PROP audit ID which is populated by the MTH_PROP Elimination and adjustments
rule associated with the Proportional adjustment type. As a consequence no rule detail
is required and the consolidation engine applies this apportionment to all accounts for
entities consolidated with the proportional method.
Equity Method
All amounts reported by companies consolidated with the equity method must be cancelled
at group level. The case of equity accounts is explained in 4.3.5 below, Consolidated
Equity Calculation.
The MTH_EQ consolidation rule is defined to cancel out all of the reported values (factor 1
used as formula). This cancellation is identified by the MTH_EQU audit ID which is
populated by the MTH_EQUITY Elimination and Adjustment rule associated with the
Equity adjustment type. As a consequence no rule detail is required and the
consolidation engine applies this cancellation to all accounts for entities consolidated with
the equity method.
Example:
Amount Audit ID
Reported value 1000 INPUT
Elim. Equity method -1000 MTH_EQU
Apportioned value 0 PROPORT

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3.4. Perimeter Changes

To produce the Statement of Cash Flows and the Statement of Changes in Equity, the
impacts of status changes for entities in the scope such as incoming and leaving
companies, and internal merger are tracked separately from other changes.


Defining dedicated Flows and Audit IDs
With an adapted configuration, the consolidation engine is able to automatically
populate distinct flows with the amount of scope change effects, depending on the
changes in the entitys and/or the Intercos status in the consolidation scope. These
flows are identified using the FLOW_TYPE property.
This process is triggered on automatic-type audit IDs.
As for the incoming unit flow and outgoing unit flow, 2 dedicated audit IDs,
SCO_INC and SCO_OUT, are created and associated with 2 specific Elimination
and Adjustment rules with identical IDs. These rules are associated with the New
and Leaving Adjustment type in order for the consolidation engine to be able to
identify the audit ID to populate depending on the scope change
As for changes in consolidation method, the difference is posted on the audit ID
that is used for the apportionment explained in 3.3 above
As for changes in consolidation rate, the difference is posted on the audit ID
populated by the automatic consolidation entry rule (Eliminations, NCI,)
The connection between the specific Flows and the specific Audit IDs defined to
identify and distinguish between effects of scope change is summarized in the
following table:
Flow FLOW_TYPE
Property
Audit ID Adjustment
type
Entity Identification
process by the
consolidation engine
F01-Incoming
units
VARSCPNEW SCO_INC New Entity not included in
the prior scope
F03-Change in
consolidation
method
VARSCPMETH MTH_PRO
MTH_EQU
No dedicated
rule
Current consolidation
method is different
from prior scope
F92-Change in
interest /
consolidation
rate
VARSCPPERC Audit ID of the
corresponding
automatic
consolidation
entry
No dedicated
rule
Current consolidation
rate / interest rate is
different from prior
scope
F98-Outgoing
units
VARSCPLEAV SCO_OUT Leaving Appropriate leaving
method assigned to
the entity (see
below)


Design Documentation

19

Outgoing units General Case
For all outgoing units, the reversal of the closing position is identified to show and
calculate the impact of outgoing balance sheet items. For entities leaving the consolidation
scope at the beginning of the period, possible reported balance sheet movements and
income statement items have no impact on the financial statements.


The following consolidation methods are created in the Business Rule and associated
with the appropriate Method type in order to trigger the built-in process :
800 Divested last year end
888 Leaving during current year
These methods are associated with the Leaving method type. Thus the closing
position of all outgoing units is cancelled out from flow F99 and reversed via flow F98.
In addition for entities leaving the consolidation scope at the beginning of the period,
the 800-divested last year end method cancels out balance sheet flows and income
statement items.


Product Warning
In the early 10.0 release of the software, the native consolidation engines behaviors
corresponding to the Leaving (During the Year) Method type and the Leaving (End of Year)
Method type are inverted. As a consequence the method 800 - Divested last year end is
in fact associated with the Leaving (During the Year) Method type. The same applies to
method 700 Acquired last year.


Internal merger
Acquiring entities are able to report the increase in assets, liabilities and equity resulting
from the internal merger.
The starter kit allows the consolidation manager to match the transfer of assets, liabilities
and equity items from the acquired entity into the acquiring entity.


The F70-Internal Mergers flow is created for the acquiring entities to record the increase in
assets, liabilities and equity resulting from the internal merger.
Moreover at the acquired company, the SCO_OUT specific elimination and adjustment rule
reclassifies the reversal of the closing position, which is triggered by default on F98 for
outgoing entities associated with one of both Leaving-Method types, onto F70.
The following consolidation methods are created for that purpose:
700 Acquired last year end
777 Acquired during current year
These methods are used in the AM_99_X1 Consolidation Rule which is in turn used in the
SCO_OUT adjustment rule.
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Distinguishing the Original Method for Divested / Merged Entities During the Year
Consolidation entries booked in entities leaving the consolidation scope or against group
partner leaving the consolidation scope must be reversed in a consistent way with the
reversal of input data.
For entities leaving the scope during the period, the balance sheet movements are
maintained and the closing position must be reversed.


The status as leaving entity in the scope is the second criteria, combined with the
business consolidation method, which makes it possible to book relevant automatic
entries on the appropriate scope changes flows.
The following consolidation methods are consequently created:
850 Proportional leaving during current year
820 Equity leaving during current year
750 - Proportional acquired during current year (internal merger)
720 Equity acquired during current year (internal merger)
These methods are used in Method-based Multipliers used in turn in several elimination and
adjustment rules when needed. Thus the closing position is reversed onto the appropriate
flow by automatic entry type.

4. Journal Entries
4.1. Best Practices
4.1.1. Balance Carry Forward

The starter kit allows the user to populate the opening balance of the current period from
the prior year-end closing balance in order to ensure the flow consistency over time
periods. This applies to the various amount types: Input data, manual journal entries (MJE)
and automatic journal entries (AJE).


Opening balances of the current year result from the carry forward of closing balances from
the previous year. This calculation is defined and executed in the following steps:
Balance Carry Forward of Manual Entries
For all audit IDs with the property DATASRC_TYPE = M, opening balances are calculated
using the data manager package CopyOpening with the carry forward rules defined as
follow:
Source account: TBS (all BS accounts)
Source flow: F99-Closing balance
Destination flow: F00-Opening balance
DataSource type: All (meaning input and manual, but not automatic)
Design Documentation

21
Calculation of the Consolidated Opening Balances (Automatic Entries)
The carry forward rules do not apply to automatic entries (audit IDs with property
DATASRC_TYPE = A). Instead, the consolidation engine calculates the consolidated opening
balances (flow F00) of the current year by copying the closing balance (flow F99) of the
previous year.

4.1.2. Flow-Based Consolidation

For manual and automatic journal entries, the closing position is always calculated from
movements. This contributes to the consistency of the closing position and movements over
time periods, notably for the calculation accuracy of the Statement of Cash Flows and the
Statement of Changes in Equity.


Automatic and Manual Journal Entries
Automatic and manual journal entries must be booked on movement flows. The impact on
the closing balance (flow F99) is calculated automatically.
This calculation is defined in one of three places:
In the elimination and automatic adjustments rules (Force closing option) for all
automatic entries that impact BS movement flows
In the journal.lgf logic script for manual journal entries (see Appendix 4)
In the copyopening.lgf logic script for manual journal entries from the previous year
(see Appendix 5)


Manual Journal Entries and the F99 closing flow
Because the impact on the closing balance is automatically calculated, the closing flow
(flow F99) should not be booked in manual journal entries.


Reminder: Opening Data in Input forms
A different logic applies to data input in forms since the closing balance is not calculated.
Instead it is used to calculate the variation flow (F15) as described in 1.3.1.2 page 7 in
this context.

4.1.3. Balanced Entries

In the consolidation, manual and automatic journal entries are booked by ENTITY according
to a contributive approach, not in adjustment or elimination entities. This is because it
must be possible to retrieve the net contribution to the group consolidated figures by
entity. This principle also facilitates the audit trail since the origin entity of the elimination
is identified.

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Manual and automatic journal entries must be balanced by Entity and Audit ID.
Elimination accounts are created in the Balance Sheet and the Income Statement. They
are used as off-setting accounts to balance elimination postings by entity. Automatic
journal entries will populate these elimination accounts as defined in the elimination
and adjustment rules. It is also possible to use these elimination accounts for manual
entries.

4.1.4. Using the Breakdown by Partner


The accounts for which intercompany values are possible (property ISINTERCO = Y) are used
as follow:
Company data is reported globally (Interco = I_NONE) and broken down by partner in
dedicated input forms
Elimination entries are booked both by partner and globally (Interco = I_NONE). This is
done by using the Force intco member option in the elimination and adjustments rules
As a consequence the detail of eliminations by partner is available for audit trail
purposes. This logic is illustrated in the table below.
Automatic adjustment rules are based on Method-based Mulipliers rules in which the
Interco method, in addition to the entity method is checked.
As a consequence, no elimination will occur when the INTERCO member corresponds to a
non-consolidated entity.


Intercompany accounts are collected by Group partner so that it is possible to test the
consolidation perimeter status of the partner in the elimination rules to trigger the
elimination accordingly. The breakdown by partner is maintained in elimination entries for
audit trail purposes, since it is then possible to explain the total amount eliminated.
Design Documentation

23
Elimination by partner and on the grand total
Account total
-Input data-
Ent 1 Revenues F99 I_NONE INPUT 50
Partner breakdown (1)
-Input data-
Ent 1 Revenues F99 I_Ent 2 INPUT 40
Partner breakdown 2
-Input data-
Ent 1 Revenues F99 I_Ent 3 INPUT 10


Elimination by partner Ent 1 Revenues F99 I_Ent2 ELIM10 -40
Elimination by partner Ent 1 Revenues F99 I_Ent3 ELIM10 -10
Total Elimination
Ent 1 Revenues F99 I_NONE ELIM10 -50
Comment ENTITY ACCOUNT FLOW Amount INTERCO AUDIT ID


4.1.5. Analysis of Changes from Local to Consolidated Value

The preparation and validation of consolidated figures, including analysis of changes from
local to consolidated values, is facilitated thanks to a business classification of all
consolidation steps and calculations (manual entries, apportionments, automatic
eliminations).


A dedicated audit-type dimension called audit ID is defined to classify data from local to
consolidated figures. This dimension is defined with a hierarchy in order to distinguish the
different main transformation steps of amounts in the consolidation process and to retrieve
these steps in reports.

4.1.6. Leveraging the Built-in Scope Change Calculation

Effect of perimeter changes on consolidated statements must be disclosed on specific flows
depending on the type of the scope change (incoming, rate or method change,).


For Balance Sheet accounts, Elimination and Adjustment Rules based on the current
perimeter rates (financial interest rate and consolidation rate) apply not only to movement
flows but also to the opening balance F00. This is because the consolidation engine is able
to automatically identify and calculate the effect due to changes in the perimeter by the
difference between the carry forward of the automatic entry from the prior year-end
period on the one hand, and the newly calculated automatic entry elimination for the
opening balance F00 on the other hand.


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Example:
December,
Prior Year
Current Time Period
POWN 0.8 0.9
Audit IDs F99-
Closing
F00-
Opening
Scope
variation*
F99-
Closing
INPUT Input data 100 100 100
AJ_xxx Automatic adjustment based on POWN 80 80 10 90

* The scope variation flow member populated by the consolidation engine depends on the status
of the entity and/or the partner (Interco) in the consolidation perimeter: incoming, leaving,
change in consolidation rate or change in consolidation method.


4.2. Manual Journal Entries

Several elimination entries or consolidation entries are booked via manual journal entries in
the starter kit: elimination of internal provisions, elimination of internal gain / loss on
disposal of assets, reclassification of the incoming position of Other Comprehensive Income
components in retained earnings for incoming entities.
Moreover it is possible to adjust the automatic entries with manual journal entries if
needed.


Manual Journal Entry Audit IDs
Manual journal entries can be manually booked using predefined audit IDs with property
DATASRC_TYPE = M. Some audit IDs have been created to allow the consolidation manager
to book entries which are not automated in the starter kit. Other audit IDs are also
available to complement automatic entries. For instance, the manual journal entry-type
audit IDs DIV11 and DIV21 are available in addition to the automatic audit IDs DIV10 and
DIV20.
Manual Journal Entry Related Calculations
The journal.lgf script logic calculates the following possible impacts related to manual
journal entries:
BS flows carry over to the F99-Closing balance flow
Carry over of the P&L impact to the retained earnings (F10)
The Journal.lgf script is described in 4 page 60.

Design Documentation

25

Account Total and Interco Breakdown in Manual Journal Entries
If a manual journal entry should impact both the account total and one or several group
partners, one journal row must be defined to record the impact on I_NONE in addition to
the journal row(s) recording the impact on the group partner(s).


Account Property for the Elimination of Provisions
The PROV-xx values have been created for the TYPELIM property and assigned to the
appropriate accounts to facilitate the setup of additional rules for the elimination of
internal provisions. However, these rules are not implemented in the current release of the
starter kit.


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4.3. Automatic Entries
4.3.1. Reciprocal Account Eliminations

Intercompany Accounts
Within the chart of accounts, only some accounts are open for recording intercompany
transactions. However, these accounts are not dedicated solely to intercompany
operations, transactions with third parties may also be recorded.
Several groups of reciprocal accounts are defined.
In the Balance Sheet:
Receivables and payables, non-current
Financial assets and liabilities, non-current
Receivables and payables, current
Financial assets and liabilities, current

In the Income Statement:
Gross profit (Revenues / Cost of sales)
Operating profit (Other income / Other operating expenses)
Financial result (Interests and other financial income/expenses)
Eliminations
The following automatic intercompany eliminations are defined:
Revenues / Cost of sales
Other income / Other expenses
Finance income / Finance expenses
Trade & other receivables / payables
Non-current receivables / payables
Financial assets / liabilities

Intercompany reciprocal accounts are eliminated against dedicated elimination accounts
(clearing accounts). As a consequence, these elimination accounts show the intercompany
mismatch at group level.
Intercompany amounts are eliminated between entities consolidated using full or
proportional methods, weighted with the lowest consolidation rate between both
companies.

Design Documentation

27

Intercompany Accounts
To facilitate the maintenance of the chart of accounts and business rules, intercompany
eliminations are defined using the following account dimension properties:
ISINTERCO: property used to show in input forms that one account can be used in
the intercompany input form. This IC indicator is displayed in the Balance input
form for P&L accounts, and in the flow analysis input forms for B/S accounts.
TYPELIM: property used to select accounts in the consolidation rules
Example: The accounts Revenues and Cost of sales have the property TYPELIM
= S_ICIS
ELIMACC: property used to define the respective elimination account to be
populated as counterpart of the journal entry (see 4.1.3).
Example: The account P119CL is defined in the property ELIMACC for the
accounts Revenues and Cost of sales

The elimination accounts are part of the account hierarchy and consequently included in
consolidated statements.
At group level, elimination accounts show the intercompany differences, resulting
from a mismatch in the intercompany amount reported by entities
At entity level, elimination accounts balance the elimination postings
Business Rules
Intercompany eliminations are performed using the Consolidation Monitor, which triggers
the Eliminations and Adjustments rules combined with the Method-based Multipliers.
For intercompany eliminations, several Method-based Multipliers are defined:
BA1_BA1_M1: consolidation methods for the ENTITY and INTERCO dimensions are:
Holding (111), Full (100), Proportional (50), Leaving companies (888, 850), and
Merged companies (777, 750)
BA1_SM1_M1 and SM1_BA1_M1: rules defining when the company or the interco is
merged
BA1_SD1_M1 and SD1_BA1_M1: rules defining when the company or the interco is
leaving
These consolidation rules are defined with consolidation formula which refers to the lowest
rate between the entitys consolidation rate and the partners consolidation rate at closing.
Explanations regarding the naming convention of the Method-based multipliers are
available in appendix (see C.8 - Naming Convention for Method-based Multipliers for
Consolidation Rules)

The ICELIM Eliminations and Adjustment rule records intercompany eliminations on the
audit ID ELIM10.
The corresponding processing rows of the ICELIM Elimination and Adjustment rules define
the following eliminations:


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Source
account
Source
flow
Destination
flow
Rule Id Applies to
S_ICBS All flow
included in
END
Same as the
source flow
BA1_BA1_M1 Full and proportional
methods
S_ICBS F99-Closing F98-Outgoing
units
BA1_SD1_M1 and
SD1_BA1_M1
Divested companies
S_ICBS F99-Closing F70-Internal
mergers
BA1_SM1_M1 and
SM1_BA1_M1
Merged companies
S_ICIS PL99 BA1_BA1_M1 IS
Formula for the Lowest Consolidation Rate
The formula used in the starter kit for returning the lowest consolidation rate between the
Entity and the Intercompany defined in the consolidation perimeter is MIN(PCON,I_PCON) .

Automatic Interco Elimination: Example for Trade Receivables and Payables
1

SELLER Company (S)
A2210 Trade receivables (Assets) L239CL Elimination account
O Interco B 130 Interco B 130 O O Interco B 130
BUYER Company (B)
BUYER
L2310 Current trade payables (Liabilities) L239CL Elimination account
O Interco S 120 Interco S 120 O Interco S 120 O
O Input amounts
O Elimination at the seller
O Elimination at the buyer



1
To keep the example easy to understand, only the journal entry by group partner is shown (O and O). As
explained in A.4.1.4, the automatic journal entry is also posted against the I_NONE member.
Design Documentation

29
4.3.2. Elimination of Dividends

Dividends paid and received are automatically eliminated based on the payers declaration.
The elimination journal entry is posted in the receivers accounts (P&L and equity).
The impact on reserves / net income is shared between the group and non-controlling
interests, based on the ownership rate of the receiver company.
In case of differences (for instance due to exchange rates), an automatic journal entry
reclassifies this difference to flow F80 of the receivers equity (account E1610-Retained
earnings).
A manual adjustment journal entry can be posted if the difference is other than an
exchange rate difference (if for instance declarations from the payer and the receiver do
not match).


Dividends are eliminated based on the detail reported by the paying company. An
additional detail, however, is collected in the receivers package to allow reconciliation of
dividends.
In the equity, dividends paid can be reported by the subsidiary on accounts Share premium
and Retained Earnings (with no partner detail) on flow F06-Dividends. An additional input
by partner is required on a single statistical account XE1610 - on flow F06.
The impact in group reserves or non-controlling reserves (accounts E1610 and E2010
respectively) is recorded by the DIV Elimination and adjustment Rule. The net result
impact is therefore also posted in the Income Statement (P2140). Since the income of the
period and the retained earnings are recorded on the same account (E1610), the
elimination of dividends results in a reclassification from flow F06-Dividends to F10-Net
Profit of the period.
Foreign Currency Conversion
On the payers side, the flow F06 is converted using the dedicated rate type, DIVR (see
Rate dimension in the RATES model). This rate can be populated in the rate table, and
should be equal to the payers currency exchange rate at the date when the dividend was
agreed by at the annual general meeting.
Using this rate will make the reconciliation of dividends paid/received easier, especially
when the receivers reporting currency is the same as the consolidation currency.
Dedicated audit IDs, DIV20 (auto) and DIV21 (manual journal entry), have been created to
post any possible conversion difference. The DIV20 audit ID is automatically populated at
the receivers by the DIVCTA Elimination and Adjustment rule. The posted difference is
calculated by using both the receivers and the payers converted declarations and using
the Swap entity-Intco option for the payer so that the amount is populated at the
receivers as well.


Dividends Paid by an Incoming Entity
Dividends paid by an incoming entity are reclassified from the dividend impact to the scope
change effect in order to provide the consolidation manager with an accurate value of the
incoming equity.

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In order to reclassify dividends paid by incoming entities during the consolidation process,
the following Elimination and Adjustment Rules have been created:
FVA10: in case of incoming payers, this rule reclassifies the total dividend
distribution impact reported on flow F06 onto flow F01. The counterpart on the
asset side is the account A2610Cash on hand, whose movements are reclassified
from F15 to F01. Consequently the incoming flow F01 remains balanced.
In order to select data only from incoming entities, the Ownership filter column is used
to test that the prior period consolidation rate equals 0 (PPCON = 0). Moreover only the
account total is selected so that the reclassification is not performed for the breakdown
by group intercompany (INTERCO = I_NONE).
DIV_INCP: in case of incoming payers, this rule reclassifies the dividend elimination
that the DIV rule triggers by default for all payers on flow F06 onto flow F01,
whatever the scope status. The destination audit ID is therefore the same as with
the DIV rule, namely DIV10. In order to select data only from incoming entities, the
Ownership filter column is used to test that the prior period consolidation rate
equals 0 (PPCON = 0).


4.3.3. Elimination of Investments

The internal investments are automatically eliminated against equity during the
consolidation.
The starter kit supports the automatic calculation of non-controlling interests in the
investments when the owner entity is not 100% owned by the group.


Investments in consolidated subsidiaries, joint ventures or associates are collected and
detailed by owned entities, using the Interco dimension.
The automatic elimination of group investments is triggered by the INV Elimination and
Adjustment Rule. It is posted on a dedicated audit ID, INV10- Elimination of investments.
Distinguishing the Impact on Flows by Operation Type
The case of purchase or disposal of investments is dealt with specifically by
selecting F20 and F30 respectively and defining F00 as the destination flow. As a
consequence, F01, F92 or F98 is impacted depending on whether the held entity
enters the scope, remains in the scope or leaves the scope
For other flows the destination is identical to the source (F40, F50, F70, F15)
Processing rows are also defined on the opening flow F00 in order to calculate
possible changes in the consolidation rates or financial interest rates (cf. 4.1.6 page
23).
Balanced Entries at Both the Owner Company and the Held Company
The elimination journal entry impacts both the owner and the held companies:
Owner company (parent): the investment values are eliminated against the
elimination account A181OC (owner company) at the consolidation rate (PCON).
Design Documentation

31
Held company (subsidiary): the rule for elimination of investments triggers an entry
on the group retained earnings against the elimination account A181HC (held
company). In case there are indirect non-controlling interests in the owner
company, the impact on the retained earnings is split between group and non-
controlling interest, based on the groups share of the owner, and therefore
calculated respectively with the POWN and PCON-POWN formula used in the
AY_AY_E2 Method-based Multipliers.


Automatic Elimination of Investments
Owner Company (O)
(owned at 80% by the group)
A1810 Investment in subs., JV & Assoc. A1810C Elim of investments - Owner comp
Flow=F20 Flow=F20
O Interco H 100 100 O O Interco H 100
Held Company (H)
(incoming, owned at 100% by O)
E1610 Retained earnings (Group)
Flow=F01
O Interco O 80
A181HC Elim of investment - Held comp (shares)
Flow=F01
E2010 NCI - Reserves & Ret. earnings Interco O 100 O
Flow=F01
O Interco O 20
O Input amounts
O Elimination of the H investment at O
O Counterpart of the H investment elimination at H








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4.3.4. Goodwill Recognition

Goodwill values are declared centrally via a one-sided journal entry posted on an off-
balance account at the held company.
Based on this information, an automatic journal entry impacts the goodwill (assets) against
the equity. If needed, the impact on the equity is split between the group and non-
controlling interests based on the groups share in the owner company.
It is possible to apply the full goodwill method.
In the event of a bargain purchase, the off-balance journal entry triggers an automatic
posting of the gain to the P&L.
Goodwill Conversion
In accordance with IFRS, the goodwill is accounted for using the held companys currency.
Due to this principle, the value of the goodwill may vary over time for subsidiaries
reporting in a foreign currency. This variation of the goodwills converted value, however,
should never impact the retained earnings but the foreign currency translation reserve.


Using Off-Balance Accounts
Goodwill (or bargain purchase) is declared by a manual journal entry posted on one of the
following accounts:
XA1300 - Declared bargain purchase analyzed by owner
XA1300NCI - Declared bargain purchase attributable to NCI
XA1310 - Declared Goodwill analyzed by owner (Gross)
XA1310NCI - Declared goodwill attributable to NCI, Gross
XA1312- Declared Goodwill analyzed by owner (Impairment)
XA1312NCI - Declared goodwill attributable to NCI, Impair.
This single-sided journal entry is posted on a dedicated audit ID, GW01-Disclosure of
goodwill and bargain purchase Man.
Owner and held company are identified as follows:
o The off-balance journal entry is posted in the account of the held company, identified
by the Entity dimension
o The intercompany detail provided using the Interco dimension corresponds to the
owner company
The journal entry must be booked in local currency, LC.
When applying the full goodwill method, a journal entry should be posted on one of the 3
accounts with the NCI suffix listed above in order to book the share of bargain purchase,
gross goodwill, or goodwill impairment attributable to the non-controlling interests.

Automatic Journal Entries
Based on the information entered in the technical accounts, automatic journal entries are
posted at the held company using the GW10 and FGW10 audit IDs. Two types of Elimination
and adjustment Rules are triggered for one consolidation event:
Design Documentation

33
GW: Goodwill booking Owner companys share
This is the common case for subsidiaries consolidated using the full or proportionate
method. The goodwill is booked on the account A1310-Goodwill against the account
E1610-Retained earnings. If there are non-controlling interests in the owner company,
the impact on the equity is shared between group (account: E1610) and non-controlling
interests (account: E2010).
Some of the processing rows handle the case of entities consolidated with the equity
method. In that case, the goodwill is not posted to the account A1310-Goodwill, but to
the account A1500-Investments accounted for using equity method.
The Method-based Multipliers used in the goodwill adjustment rules refer to the closing
consolidation rates of the Interco company (I_PCON and I_POWN formula) which
represents the owner company in this case, in accordance with the requirements.
FGW: Goodwill booking Non-controlling interests (full goodwill method)
This automatic entry is triggered if you have declared goodwill in the XA1310NCI account
with a breakdown by Interco (owner company). It impacts the goodwill (account: A1310)
against the non-controlling interests (account: E2010).

The Method-based Multipliers used in the full goodwill adjustment rules simply apply
factor 1 to the selected amount since the amount declared in the journal entry is fully
attributable to the non-controlling interests in this case.
Goodwill Conversion
To comply with the requirement regarding goodwill conversion, the GWCTA and FGWCTA
Elimination and Adjustment Rules book the currency translation adjustment by selecting
the F80-Currency translation adjustment flow of the off-balance accounts XA1310,
XA1310NCI, XA1312, and XA1312NCI. Note that the amounts stored on these accounts are
recorded in the held companys currency, so the flow F80 is automatically posted by the
conversion rules.
Two dedicated audit IDs, GW20-Currency translation adjust. on goodwill Auto and FGW20
-Currency translation adjust. on NCI goodwill -Auto have been created for the purpose of
handling goodwill conversion.
Bargain Purchase
If a business combination causes a bargain purchase, the dedicated account XA1300-
Declared bargain purchase analyzed by owner must be used to declare the corresponding
gain.
The automatic journal entry impacts the P&L on account P1640-Gain on bargain purchase or
P3000-Share of profit (loss) of assoc. & JV in case the held company is consolidated using
the equity method.
It is possible to check that the F01-Incoming units flow balances for this entry, by retrieving
the A139CL-Clearing account-Bargain purchase account (flow F25 balances flow F01).




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Goodwill Recognition
Held Company (H) Owner entity O is owned at 80% by the group
(owned by O)
Held entity H is owned at less than 100% by the group:
the full goodwill method can therefore be applied
XA1310 Declared GW XA1310NCI Declared GW attrib. NCI
Flow = F01 Flow = F01
O Interco O 100 O Interco O 50
A1310 Goodwill E1610 Retained earnings
Flow = F01 Flow = F01
O 100 80 O
O 50
E2010 NCI - Reserves & Ret. Earnings
Flow = F01
20 O
50 O
O Amounts from manual entries on the off-balance accounts
O Automatic journal entry, including split group/NCI
O Automatic journal entry, goodwill attributable to NCI






4.3.5. Consolidated Equity Calculation

The equity of consolidated companies are split between the group and non-controlling
interests according to the following principle:
The accounts E1110-Issued capital and E1210-Share premium are transferred to the
group retained earnings and retained earnings of non-controlling interests for any
entity except the parent company of the group
For other equity accounts, the group share is maintained on the original account, and
the non-controlling interest share is calculated on the related non-controlling interests
account.
The relationship between source equity accounts and non-controlling interests equity
accounts is summarized in the table below:

Design Documentation

35

Group equity account (selection) NCI equity account (destination)
E1110 Issued capital E2010 NCI - reserves and retained earnings
E1210 Share premium E2010 NCI - reserves and retained earnings
E1310 Treasury shares E2070 NCI - Treasury shares
E1510 Revaluation surplus, before tax

E2020 NCI - Revaluation surplus before tax
E1511 Income tax on revaluation surplus

E2021 NCI - Income tax on revaluation surplus

E1520 Actuarial gains and losses, before tax
(suspense account)
E2030 NCI - Actuarial gains and losses, before
tax (suspense acc)
E1521 Income tax on actuarial gains and losses
(suspense acc.)
E2031 NCI - Income tax on actuarial gains and
losses (suspense acc.)
E1540 Hedging reserve, before tax E2040 NCI - Hedging reserve, before tax
E1541 Income tax on hedging reserve E2041 NCI - Income tax on hedging reserve
E1550 Fair value reserve, before tax E2050 NCI - Fair value reserve, before tax
E1551 Income tax on fair value reserve E2051 NCI - Income tax on fair value reserve
E1560 Foreign currency translation reserve,
before tax
E2060 NCI - Foreign currency translation
reserve, before tax
E1561 Income tax on foreign currency
translation reserve

E2061 NCI - Income tax on foreign currency
translation reserve
E1570 Equity component of compound financial
instruments
E2080 NCI - compound financ. instruments
E1610 Retained earnings E2010 NCI - reserves and retained earnings




Equity consolidation postings mentioned above are triggered by the following
Eliminations and Adjustments rules:
CONS_EQ adjustment rule
o This rule selects both the issued capital and share premium accounts via the S_EQU-
G01 TYPELIM account property. These accounts are cancelled out (see Destination
ALL account) against the group retained earnings and non-controlling interests
retained earnings, accounts E1610 and E2010 used as destination in the Destination
group account and Destination minority account columns.
o For that purpose the S[x]1_99_E2 Method-based Multipliers are used here so that
the original account is completely cancelled out (PCON formula) and the group
retained earnings and non-controlling interests retained earnings populated with
the group share (POWN) and non-controlling interests share (PCON-POWN)
respectively.
o This entry is booked on the CONS10 audit ID.


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NCI_INPUTxx / NCI_ADJxx adjustment rules
o These eliminations and adjustments rules select equity accounts other than issued
capital and share premium via the S_EQU-G02/3/4/9 TYPELIM property values.
These property values are kept distinct in order to distinguish between equity
accounts that are part of the Other Comprehensive Income (OCI) (see NCI_FVA, OCI
for Incoming Entities below), retained earnings, and other equity account excluded
from OCI.
o Here the non-controlling interests share is subtracted from the original account
against the respective non-controlling interests account, by using the SA1_99_E3
Method-based Multiplier which applies the PCON-POWN formula - that is, the non-
controlling interests share - both to the original account defined in the Destination
ALL account column (default factor = -1) and to the Destination minority account
column (default factor = +1).
o Each respective non-controlling interests account is dynamically populated
depending on the source equity account by using the PROP() keyword applied to the
ELIMACC property in the Destination minority account column. This is because each
equity account has been associated with its respective non-controlling interests
account via this account property.
o The NCI_INPUTxx and NCI_ADJxx are built on the same principle and include the
same detail rows. They simply populate distinct destination audit IDs depending on
the source audit ID, hence the audit ID restriction via the Source data source
column in the automatic adjustment rule.
These entries apply to all consolidation methods except the holding (main company),
that is not only to full and proportionate but also to the equity method (see below).



Equity Method
Equity values trigger an update of the investment value against the consolidated
reserves. The net income of the period also updates the investment values against a
dedicated account, P3000-Share of profit (loss) of assoc. & JV accounted for using EM, in
the P&L.


Following the cancellation of all accounts for entities consolidated with the equity
method by the MTH_EQUITY elimination and adjustment rule, the equity value equals 0
(see 3.3 - Consolidation Methods and Rates).
The purpose of the MTH_EQUITY22 Elimination and Adjustment rule is twofold:
Restore the converted value of equity accounts against the account A1500-
Investments accounted for using equity method, therefore the MTH_EQUITY2
automatic adjustment rule selects all leaf-level accounts under the parent
account E199T-Equity attributable to owners of parent.
Book the net result of the entity consolidated with the equity method in the P&L
on the account P3000. This is done by selecting the flow F10 of the retained
earnings account (TYPELIM = S_EQU-G09).
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The EA_99_E4 method-based multiplier applies the PCON formula to the Destination
ALL account column in order both for the equity accounts to be restored and the P&L
account to be booked at the entitys consolidation rate.
Since the value of the equity accounts is restored, the group equity and the calculation
of the non-controlling interests for entities consolidated with the equity accounts can
follow the general principle explained here above.


Equity of Incoming Units
For entities entering the consolidation scope, the incoming value of the Other
Comprehensive Income components are reclassified in group and non-controlling
interests retained earnings according to the financial interest rate.


The reclassification of OCI accounts is booked by impacting the F01 flow via a manual
journal entry on the FVA11 audit ID for relevant entities on a 100% basis.
The NCI_FVA elimination and a adjustment rule books possible non-controlling interests
on the MJE reclassification amount by subtracting the non-controlling interests amount
calculated via the PCON-POWN formula of the SA1_99_E3 method-based multiplier. As a
consequence this calculation principle of the non-controlling interests is consistent with
the non-controlling interests calculation principle of the NCI_INPUTxx and NCI_ADJxx
adjustment rules, and both non-controlling interests calculations are symmetrical, as
illustrated below:
Reclassification of OCI for Incoming Entities
Input data Ent 1
E1510 -
Revaluation
surplus, before
tax
F01 I_NONE INPUT 100
AJE : NCI on Input data Ent 1 E1510 F01 I_NONE NCI_INPUT -20
MJE: OCI reclassification Ent 1 E1510 F01 I_NONE FVA11 -100
AJE : NCI on OCI
reclassification via MJE
Ent1 E1510 F01 I_NONE NCI_INPUT 20
Comment ENTITY ACCOUNT FLOW Amount INTERCO AUDIT ID


In order to automate the reclassification entry in the starter kit, it would be necessary
to identify not only the entities which are entering the consolidation scope, but also the
entities that have entered the consolidation scope in the past on a prior time period.
This is notably because the automatic entry must be booked on the opening position to
calculate the effect of scope changes consistently as explained in 4.1.6, Leveraging
the Built-in Scope Change Calculation.
However, there is no easy way to dynamically keep track of an entity which enters the
consolidation scope in a prior time period. As a consequence this reclassification is
booked manually.
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4.3.6. Currency Translation Adjustment (CTA)

Equity and Net Income
The currency translation differences resulting from the currency conversion of equity
accounts must be adjusted to show group interests and non-controlling interests.
Investments
The currency translation difference on investments is transferred to the conversion
reserves of the held company.


CTA on Equity
Following the conversion process, the first part of the currency translation adjustments
(CTA) related to equity accounts has been processed since conversion reserves have been
recorded on a 100% basis on the original input and local level adjustment audit IDs (see A.
3.1 - Foreign Currency Conversion).
Therefore the second part of the CTA process is triggered by the NCI-prefixed elimination
and adjustments rules which are more generally intended to calculate non-controlling
interests for equity accounts: NCI_INPUT, NCI_INPUT10, NCI_ADJ90. (see. A. 4.3.5 -
Consolidated Equity Calculation)
As with other equity accounts, the E1560 is selected dynamically by these rules via the
TYPELIM account property (S_EQU-G03 value). However only the F00-Opening flow and the
F80-Foreign exchange gain/loss flow are relevant for this account.
Source accounts Destination Group accounts Non-controlling interest
account

E1560: Foreign currency
translation reserve, before tax
(TYPELIM = S_EQU-G03)

Same account: E1560

NCI are subtracted from this
account

E2060: NCI - Foreign currency
translation res. before tax
CTA on Investments
The conversion difference of the current period between each movement on investment
accounts and the closing position is stored on flow F80. Consequently this amount is
eliminated against the conversion reserves at the held company by the INVCTA elimination
and adjustment rules. The entry is balanced by using the same clearing accounts as for the
investment elimination. In this rule, group conversion reserves and non-controlling interests
conversion reserves are defined as the destination group accounts and destination minority
accounts.
According to the built-in scope variation calculation principle explained in 4.1.6, it is
necessary to be able to select the cumulative CTA amount at opening to record the
adjustment on the opening flow and so to prevent any wrong scope change calculations by
the consolidation engine. Consequently, as explained in 3.1, the cumulative amount of
currency differences between historical rate and closing rates over time periods is stored in
a dedicated off-balance account (also referred to as a technical account): YA11810C.
To complement the investment elimination entry, which impacts the consolidation
reserves, these currency differences are reclassified from consolidation reserves to
conversion reserves at opening. This entry is also recorded by the INVCTA elimination and
adjustment rule on the INV20 audit ID.
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39
Source accounts

Destination Group accounts

Non-controlling interests
account

Current period CTA:
A1810: Investments in
subsidiaries, JV and associates

Cumulated CTA at opening
YA1810C: Technical - CTA on
Investments


E1560: Foreign currency translation
reserve, before tax
(

A1810 Investments
A181OC Investments clearing
account



E2060: NCI - Foreign
currency translation res.
before tax




The investment currency difference is adjusted on the owned company (swap entity /
interco option), using the consolidation rates of the owner company defined in the
AY_AY_E2 method-based multiplier.
CTA on Goodwill
The principle is identical to the one explained above for investments and is applied by using
distinct configuration objects:
Technical accounts: YA13xxC and YA13xxCNCI
Elimination and adjustment rule: GWCTA and FGWCTA
Audit ID: GW20 and FGW20


5. Periodic Figures Management

Year to date data is collected and processed in the starter kit. The retrieval of periodic
figures is possible. However, periodic figures are not translated following a periodic
conversion. They result from the difference between the year to date amounts of the
current period and the prior period.
Periodic amounts are shown in the Income Statement and the Statement of Cash Flows.



The models are defined with the Year To Date data entry mode.
The built-in MEASURE amount type is initialized in the Income Statement and the
Statement of Cash Flows to distinguish between periodic and year to date amounts in
columns.
The Statement of Financial Position (BS) is always defined with the YTD year to date
MEASURE.

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6. Financial Statements for Statutory Publication
6.1. Calculation of Financial Statement Items

The expression financial statements for statutory publication refers to the 3 following
financial statements whose items are calculated from Balance Sheet movements and
Income Statement items:
Statement of Cash Flows (SCF)
Statement of Changes in Equity (SCE)
Statement of (Other) Comprehensive Income (SCI)
The Statement of Cash Flows, which is retrieved according to the indirect method,
derives from the Balance Sheet flows and the Income Statement accounts. It discloses
cash effects from operating, investing and financing activities as required by the IAS 7.
The Statement of Changes in Equity discloses an analysis of the variation of the total
equity (group and non-controlling interests) over the current period.
The Statement of Other Comprehensive Income takes its starting point in the net income
for the period and then provides a detailed view of the other components.
The total comprehensive income is split between group and non-controlling interests.
Note:
According to IAS 1 revised, the comprehensive income items can also be disclosed in the
Statement of Comprehensive Income, which gives detail on the main Income Statement
items and a summary of the other components of comprehensive income. However, this
report has not been created in the starter kit.


Considering the large volume of data required to produce these 3 statements, the following
Excel workbooks are defined:
SCF.XLSM: Statement of Cash Flows. This workbook includes all accounts and flows
necessary to compute the cash flow items, without breakdown by entity.
SCI & SCE.XLSM for both the Statement of Other Comprehensive Income and the
Statement of Changes in Equity. This workbook includes the required accounts and
flows, and the breakdown by entity, as needed for the statement of Other
Comprehensive Income.
Financial statement items are calculated with standard Excel formulas and therefore, are
not stored as application data. The first set of these formulas essentially aim at distributing
figures of all required indicators into financial statement items according to a mapping
table. The second set of formulas is meant to actually produce financial statements by
aggregating the data distributed in all items and present it in reports.
The Excel workbooks are structured with the following tabs:
Data: retrieves all indicators from the consolidation that contribute to financial
statement items. Figures are obtained with a standard EPM report that expands
indicators in rows and periods in columns. For the Statement of Changes in Equity
and the Statement of Other comprehensive Income, the entities are also expanded
in the columns. The consolidation method, stored in the Ownership model is also
retrieved thanks to the EPMRetrieveData formula (this formula requires the
connection name to be input in cell B2).
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Account: lists all members of the Account dimension with their properties. They are
used as the source of the mapping between indicators and financial statement
items. This tab is also populated by an EPM report that expands all Account
dimension members in rows. Member properties are retrieved by
EPMMemberProperty functions.
Item: contains all financial statement items used for the production of the
Statement of Cash Flows, the Statement of Changes in Equity and the Statement of
Other Comprehensive Income. They are defined within a hierarchy named Parent.
For instance, the SCF account hierarchy notably includes the following nodes: Net
Cash Flows from Operating activities, Net Cash Flows from Investing activities and
Net Cash Flows from Financing activities. None of these items are part of any
dimension declared in the consolidation models: they all must be created and
maintained manually in the spreadsheet.
Mapping: specifies cross-references between source accounts and flows on the one
hand and financial statement items on the other hand. Like financial statement
items, these cross-references are not either part of any dimension declared in the
consolidation model: they also must be created and maintained manually in the
spreadsheet. A more detailed description of the Mapping worksheet is provided
hereafter.
Matrix: contains only formulas. Some read into the Mapping spreadsheet to find
which elementary pair of {account x flow} to assign with appropriate financial
statement items. Other formulas fetch figures from the Data worksheet and assign
them with a destination item on the basis of the related {account x flow} pair. A
more detailed description of this worksheet is provided hereafter.
SCI, SCF, SCE: contains financial statements, built with conditional sum formulas
that aggregate data calculated on financial statement items in the Matrix
worksheet.


In the Mapping worksheet, each cross reference, also called a mapping, has the following
properties:
Method: for specifying how to select source accounts. Possible values are Class or
Mapping, to indicate which account property is referred to in the mapping.
Value: for specifying which value of the previously chosen property is used to select
source accounts. The specified value must exist in the set of values of the property
chosen to select source accounts.
Flow: for selecting source flows.
Item: for specifying the destination financial statement item depending on the
source accounts and the source flow. The item must exist in the set of items
declared in the Item worksheet.
Sign: for specifying if the account / flow combination must be positively or
negatively copied to the item. Values must be 1 or -1.
Rows: formulas calculating the cumulative number of rows required to expand all
accounts for the specified selection method and value. These formulas should not
be changed because their results are used in the Matrix worksheet.
Mappings can be added or removed by inserting or deleting rows within the existing range.


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The Matrix worksheet contains only formulas that recalculate elementary pairs of {account,
flow} and determine to which related financial statement items their figures from the Data
worksheet should be aggregated.
To make sure that all financial statement items are correctly calculated, a sufficient
number of formulas must exist in the range. For instance, if a new mapping is created in
the Mapping worksheet, additional rows within this range with appropriate formulas will
have to be created, using a standard copy/paste of cells.
To help maintain this range, a control formula has been created in the first cell of its
rightmost column. This formula shows a message indicating if the matrix has enough rows.
If not, an error message is displayed that calculates how many additional rows are needed.
These rows must be inserted and then formulas from an existing row can be copied and
pasted to new rows.


The Mapping and Matrix worksheets are at the heart of financial statement items
calculation in the Starter Kit. Therefore, they deserve particular attention if changes
should be made to their content. In particular, it is strongly recommended not to make
any changes to the way these formulas are designed, in order to preserve the correct
calculation of all financial statement items.
The control formula message is displayed in all three financial statements: if an error is
detected in the Matrix worksheet, all report titles are replaced by the error message.

6.2. Audit of Financial Statement Items

It is possible to understand how each financial statement item has been calculated. The
end user can drill down from one item of one of the financial statements for statutory
publication (SCF, SCE, or SCI) through to the respective breakdown by original account and
original flow.


This audit functionality of the statements is implemented via a VBA macro, named
FilterMatrix which shows up the Matrix worksheet with rows filtered according to the
financial statement item currently selected.


Thus, during operation, the end user can do the following:
Right-click on one line of the Statement of Cash Flows, the Statement of Changes in
Equity or the Statement of Other Comprehensive Income.
Execute the Audit command at the end of the shortcut menu. The breakdown by source
account and flow shows up in the Matrix worksheet.





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7. Data Consistency Controls

To secure the correctness of consolidated statements, including the Statement of Cash
Flows and the Statement of Changes in Equity, the quality of reported data is checked at
local level (entity by entity) and at central level for all entities.
The following groups of controls are performed:
Balance Sheet: balance of the opening and closing position, consistency of the gross
value / amortization and impairment, net income in equity versus IS
Flows: authorized flows, allowance and write-back versus IS, balancing flows
Elimination accounts (central-level control)
7.1. Local Level Controls

Four types of controls are provided in the starter kit.
Controls for balance analysis (named Axxxx), such as balance sheet balance and gross
value versus depreciation. These controls check both opening balance and closing
balance.
The control of the balance sheet balance is broken down by Audit ID to ensure the
consistency of each input level.
Controls for flow analysis (named Bxxxx). For each account for which a flow analysis is
required, these controls check that the Net variation flow (F15) is equal to zero.
Some controls also check that the total value of some specific flows is balanced (F50-
Transfer, F09-Change in accounting policies, F70-Change in the restructuring).
These controls are broken down by Audit ID to ensure the consistency of each input
level.
Controls for interco analysis (named Cxxxx, Dxxxx, Exxxx). Some of these controls
check the gross value versus the depreciation by partner, for both the opening balance
and the closing balance. For each interco account for which a flow analysis is required,
other controls check that the Net variation flow (F15) is equal to zero, by partner. Lastly
for all interco accounts (B/S and P&L), other controls check that the sum of interco
amounts (ALL_INTERCO) is lower that the total amount (I_NONE).
Lastly the T_00 control checks that for each B/S account, the closing balance (flow=F99)
equals the sum of opening balance and the movements (calculated in the END parent
member). This control is broken down by account and audit ID.
This control was designed for the following purpose: the starter kit calculations ensure
that the F99 flow equals the END flow. However, when importing a file, the user can still
deactivate the default logic which triggers the calculation of the Net Variation flow
(F15): this would result in a mismatch of the F99 flow and the END flow.
All these controls are assigned the Blocking type. Therefore the control status is checked
when the work status is changed in the Consolidation Monitor.
These controls are defined using the standard Controls rules. Controls are executed using
the Controls Monitor.

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7.2. Central Level Controls

The validation of data at central level is performed via control reports located in the
CONTROL REPORTS folder available in the CONSOLIDATION model.

Data Consistency Dashboard.xlsx
The rows of this report allow the user to check the following for the aggregated value of all
group entities:
the Balance Sheet is balanced for all flows defined as flows to be balanced via the
BALANCED property (set to Y): Opening, Closing, Incoming entities, Transfer
the reported closing balance (F99) is consistent with the calculated closing balance
(parent member END) for assets and liabilities.
the net income in the equity (F10-Net profit/loss for the period) is consistent with
the net income/loss calculated from the income statement (P999T).
both A181HC and A181OC investment elimination accounts compensate, the first
one being the counterpart of the second one (sum = 0).
Lastly the bottom part of this report focuses on reciprocal intercompany clearing
accounts (i.e. intercompany elimination accounts) by highlighting intercompany
mismatches by account category: if one clearing account does not equal 0 for the
sum of all entities, different amounts were eliminated for each entity and so the
intercompany input data does not match. Clearing accounts are dynamically
selected using the ISINTERCO property (value =E).
These different sections are defined using different reports that share the same page axis
and rows axis.
The control results (OK flag, or difference amount) is defined using an Excel formula
inserted in specific local members defined in each report.

Opening balance.xlsx
This report checks that the Balance Sheet opening balance equals the closing balance of
the previous year for each Balance Sheet account. It is configured dynamically by defining
hierarchy-based selection that returns all members of assets, liabilities and equity
accounts.
The columns are defined by two separates reports (sharing the page axis and the row axis)
with a dynamic selection of the previous year using the offset function in the member
selector.
The difference between both columns calculated using local members.
FLBL by AuditID.xlsx
This report checks the following by AuditID:
o assets equal the sum of liabilities and equity at opening and closing,
o net income in the equity equals the net income/loss calculated from the
income statement,
o flows defined as to be balanced actually balance
For each of these controls, AuditID are broken down in rows, and local members display the
control results.
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FLBL by Entity.xlsx
This report is similar to FLBL by AuditID.xlsx, but it shows a breakdown by entity in
rows.

8. XBRL Publishing

The starter kit allows the central user to generate XBRL instances from the consolidated
data produced with the starter kit.


An IFRS-based Discoverable Taxonomy Set (DTS) has been created. The corresponding
XML files are embedded in the tagging file (see below) and thus delivered with the
starter kit. This DTS mainly includes IFRS taxonomy concepts and it is based on the IFRS
taxonomy presentation and calculations. It can be modified to reflect the customization
performed in the starter kit and the specificity of your application compared to IFRS. In
this respect, a few extension concepts have been created for the Statement of
Comprehensive Income.
The starter kit also includes a specific Excel tagging workbook IFRS2010-BPC-FORM-
20F.xls in which the starter kits indicators (account and flow combinations) have been
pre-mapped with items from the IFRS-based DTS. This file is located in the XBRL reports
folder of the CONSOLIDATION model.
This workbook includes the following worksheets, the cells of which have been tagged to
the DTS items by using the Report Builder Excel Add-In of the SAP BusinessObjects XBRL
Publishing solution by UBmatrix:
statement of financial position and income statement: the tagged cells of these
worksheets are initialized with the EPMRetrieveData function of the SAP Business
Objects EPM Excel client because the related data is stored and dimensionally
identified in the data base;
statement of cash flows, statement of comprehensive income and statement of
changes in equity: the tagged cells have been linked via external formula to the 13
SCF.xlsm workbook or the 14 SCI & SCE.xlsm workbook because the related data is
computed in these files.


Links to the 13 SCF.xlsm file and the 14 SCI & SCE.xlsm file
Formulas referencing the relative path to the 13 SCF.xlsm workbook and the 14 SCI &
SCE.xlsm workbook have been used in the IFRS2010-BPC-FORM-20F.xls Excel mapping
workbook. For these formulas to work properly, both reports must be located in the same
directory. This implies making a copy of these 3 files in the same local directory before
creating the XBRL instance. More detailed instructions are available in the Instructions tab
of the mapping report.


It is necessary to install the SAP BusinessObjects XBRL Publishing by UBmatrix
software to be able to maintain the mapping between the starter kit chart of accounts and
the IFRS taxonomy items, then validate and generate XBRL instance documents.
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9. Working Languages

The starter kit handles English as unique language.

10. Security and business workflows
10.1. Security by dimension

User can only enter data on their own entity. The security allows differentiating data entry
and consolidation manager profiles.



Secured dimensions are the following:
Consolidation model: Entity, AuditID, Consoscope
Ownership model: Entity
Rates model: RateEntity
In the three models, the dimensions that stand for entity drive the dimensional security.
AuditId and Consoscope have been added for the Entry Level data access profile which
required additional dimensions for a more restricted access.
10.2. User groups

Typical user roles involved in the consolidation reporting process are defined in the starter
kit. Affecting a user to a role sets all his/her rights automatically in terms of accessing
product features and data.



In addition to the built-in Admin team, 3 teams that reflect business roles have been
defined in the starter kit:
Consolidation managers team
Data entry users team
Report viewers team
Depending on the team to which a user is affected, an entire security configuration applies
automatically (see 9.Security settings by team of users on page 55)


Access to company templates in the Excel Client
In the Task profiles, the task called ManageTemplate has been removed from all profiles,
except the Admin. As a consequence, the action Open Server Root Folder and Open Server
Input Form Folder does not appear in the menu of the Excel client. The user is therefore
guided to the appropriate folders (SCHEDULELIBRARY and REPORTLIBRARY).

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10.3. Workflow management

A user managing a group of reporting entities can check if the data entry related tasks have
been performed and assign the appropriate level of approbation status: started, submitted,
rejected, and approved.


Even though users that are registered as Owner in the Entity dimension are likely to be
changed after the starter kit is restored in a new environment, the way they are
hierarchically organized illustrates how Work Status and BPF workflows should be designed
with the starter kit.
This recommended configuration assigns the same user to both the roles of Work Status
manager (Owner of a parent entity (1)) and the role of BPF approver (reviewer of a child
entity (2)).

ID DESCRIPTION OWNER REVIEWER
ALL_ENTITY Total All Entities CONSOMNGR
EZONE Euro Zone

CONSOMNGR (1)
NA
S000 Holding Germany 1 LOCALUSER CONSOMNGR (2)
S001 Subsidiary United Kingdom LOCALUSER CONSOMNGR

CONSOMNGR belongs to the CONSOLIDATION MNGR Team

LOCAL USER belongs to the DATA ENTRY USERS team
(see 9.Security settings by team of users on page 55)


Mirroring roles (workstatus manager=BPF approver)
This mirroring structure should be replicated with actual users as part of the
implementation project to keep BPFs and Workflows settings both consistent and quickly
usable. Indeed, the starter kit and especially the BPFs are not configured for distinct
reviewers/approvers. (e.g. CONSOMNGR is reviewer of S000 but the Work Status
manager of S000 is LOCALUSER).


In terms of Work status, four levels have been defined. By default, the data is always set
to the Started O status. Once the data is entered and controlled, bothO the owner and
the manager are allowed to change the work status to SubmittedO. From this point on,
the manager only can change data using journalsO or input formsO. When the status is
set to Approved, only the manager can set the work status back to Rejected or reset
it to Started if necessaryO. As long as the status is Approved, no data can be
modified using input formsO, but Journals and Data Manager are still possible for the
Manager.
For all work status, creation or modification of comments and documents is possible.

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Work state
Data
Manager Journals
Manual
entry Comments Documents
Controlled
By
Started O All All Owner All All Both O
Submitted O Manager ManagerO
Manager
O
All All Both
Rejected Owner Owner Owner All All Both
Approved Manager Manager LockedO All All ManagerO



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B. Configuration Overview
1. Models

Model Name Use
Reporting Models
CONSOLIDATION Reference Financial data

Non Reporting models
OWNERSHIP
Consolidation Scopes: methods and consolidation rates by
Entity
RATES Currency Translation Rates

2. Dimensions Consolidation model
Dimension Type Use


Category C-Category Reporting type / cycle: Actual, Budget, etc.
Time T-Time Time period
Entity E-Entity Reporting entity / (Legal/Management unit)
Account A-Account Financial and Statistical accounts
Flow S-Subtable Positions (Opening/Closing) and detail of movements
AuditId D-Audit Business origin of the data
Interco I-Interco Transaction Partner or held company in the group
ConsoScope G-Group Consolidation Scope
Currency R-Rep. Currency Consolidation Currency





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3. Configuration Specific Dimension Properties

Only the starter kit specific properties and built-in properties used in a particular way in
the starter kit are listed below. For clarification regarding the other regular properties
delivered in Apshell, please refer to the Planning and Consolidation documentation.

Dimension Property Specific use



Account ACCTYPE This built in BPC property is also used by the cash flow mapping.
CFS
Used for the Cash Flow accounts calculation processing (source
account selection)
FLOWAN Used in the input forms to highlight allowed flows
GROUP
Used in the script Logics to distinguish between Balance Sheet
accounts (BSA), Income Statement accounts (ISA).
UPROFILE
Used to filter consolidation accounts (2CONSO) in the input forms so
that only local level general ledger accounts (1GL) are initialized.
ISINTERCO Used in input forms to display the IC indicator as appropriate.
Flow FLOW_DOC
Used in the member selector in the input forms to select relevant
flows.
BALANCED
Used to identify flows for which the total of assets and liabilities and
equity must be balanced (see notably the Dashboard control report)

4. Default Script Logic Calculations
The real time calculations triggered by the Default.lgf script logic as and when data is input in
forms or imported are the following:
1. Calculation of the income of the period in the balance sheet (E1610 / F10)
2. Calculation of the net variation flow (F15) as the difference between closing and the sum
of other Balance Sheet flows
The detailed script logic is available in appendix (see A.1 - Default.lgf Script Logic)
5. Manual Journal Entry script logic: Journal.lgf
The real time calculations triggered by the Journal.lgf script logic when a manual journal entry
is booked are the following:
1. Impact from P&L to BS Equity (F10)
2. Carry-over of flows to the closing balance (F99)
The detailed script logic is available in appendix (see 4- Journal.lgf Script Logic Default.lgf
Script Logic)

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51
6. Eliminations and Adjustment Rules
The list of the elimination and adjustment rules of the starter kit and their purpose is presented
in the table below:
Rule ID Purpose
CONS_EQ Cancelling issued capital and share premium for subsidiaries
CTA_I_NONE Balancing F80 against net variation cash
DIV Elimination of dividends
DIVCTA CTA - Elimination of dividends
DIV_INCP Dividends - Reclassification for incoming payers
FGW Additional rules for full goodwill recognition
FGWCTA CTA - Full goodwill recognition
FVA10 Dividends - Reclassification to F01 for incoming entities
GW Goodwill recognition
GWCTA CTA - Goodwill recognition
ICELIM Elimination of reciprocal intercompany operations
INV Elimination of investments
INVCTA CTA - Elimination of investments
MTH_EQUITY Cancelling accounts for equity method entities
MTH_EQUITY2 Restoring equity accounts for equity method companies
MTH_EQ_L Managing equity method for outgoing and merged entities during the period
MTH_PROP Proportionating accounts for proportionate entities
MTH_PROP_L Managing proportionate method for outgoing and merged entities during the period
NCI_ADJ90 NCI - Manual journal entries entered with ADJ91
NCI_CTA10 NCI - CTA01 - Manual journal entries on conversion reserves
NCI_FVA NCI - Manual journal entries for OCI reclassification for incoming entities
NCI_INPUT NCI - INPUT
NCI_INPUT10 NCI - INPUT11
NCI_INPUT90 NCI - Manual journal entries entered with INPUT91
NCI_INV30 NCI Manual journal entries entered with INV31
NCI_INV30_2 NCI Manual journal entries entered with INV32
SCO_INC Reclassifying F00 to F01 for incoming entities
SCO_OUT Managing leaving companies
SCO_OUT2 Reclassifying F98 to F70 for merged entities

The configuration of the elimination and adjustment rules headers is available in appendix (7 -
Elimination and adjustment Rules).





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7. Balance Carry Forward
As described (see 1.3.1 page 6 and 4.1.1 page 20), the carry forward of the opening balances
is triggered by different processes depending on the audit ID type:
At local level and for manual journal entries, the carry forward is triggered by the
CopyOpening Data management package
For automatic entries, the carry forward is triggered by the Consolidation package.

8. Input forms and Reports Configuration Principles
8.1. General Principles
Input forms and Reports are defined by using the EPM Office Add-in Excel. No macro
programming is used, except for the Statement of Cash Flows, the Statement of Changes in
Equity and the Statement of Comprehensive Income for which the configuration principle is
dramatically different (see 0 on page 40).
8.1.1. List of Input Forms and Reports
Input form name Use
Main files:
11 Balance.xlsx
21 Non-current non-financial assets.xlsx
22 Financial Assets.xlsx
23 Other Assets.xlsx
24 Net Equity.xlsx
25 Net Equity EM.xlsx
26 Liabilities.xlt
27 Specific Operations.xlsx
31 IC Balance Sheet.xlsx
32 IC Profit and Loss.xlsx
33 IC Control Balance.xlsx

These input forms allow the end user to enter
BS data (opening and closing balances and
details by flow) and IS data.


Intercompany input forms allow the user to
input details by interco for one account
selected in the EPM context.








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53

Report name Content
Financial Statements:
11 BS.xlsx
12 IS.xlsx
13 SCF.xlsm
14 SCI & SCE.xlsm
Analysis Reports:
21 BS by Flow.xlsx
22 BS by Flow and AuditID.xlsx
23 BS by AuditID.xlsx
24 BS by Entity.xlsx
25 IS by AuditID.xlsx
26 IS by Entity.xlsx
Accounting Reports:
31 BKD by Entity.xlsx
32 BKD by Partner.xlsx
Control Reports:
41 Data Consistency Dashboard.xlsx
42 FLBL by AuditID.xlsx
42 FLBL by Entity.xlsx
44 Opening Balances.xlsx
XBRL:
IFRS2010-BPC-FORM-20F.XLS

Balance Sheet (standard and short)
Income Statement (standard and short)
Statement of Cash Flows
Statement of Comprehensive Income and
Statement of Changes in Equity

These reports provide additional details of the
B/S and I/S by Flow, Audit ID, Entity.
These reports provide the details of an account
balance by entity or partner. The account is
selected in the EPM Context.
These reports provide additional controls, such
as clearing accounts, flows that should be
balanced, controls by AuditID...
This report retrieves and map the necessary
data for XBRL publishing.

8.1.2. Members selection
Dimension members are selected in the input forms and reports using the Member Selector
features. The selections are defined using parent members, base members, properties, or a
combination of these. To ease the enhancement of the Starter Kit configuration, selections are
dynamic so that new members will be automatically inserted in the forms and reports
provided that these members are assigned the correct parent member and properties.
The tables below list the properties used for the members selection in the Input forms and
Reports.




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Input forms
Dimensions Property Examples
Account UPROFILE 1GL, 2CONSO
FLOWAN F25 F30 F35 F00 F99 F09 F50 F70
UPROFILE 1GL, 2CONSO
Flow FLOW_DOC OPE, DEP, PL,
ISINTERCO Y

Reports
Dimensions Property Examples
Account STYLE H, NH,T3
ISINTERCO E,S,Y
Flow FLOW_DOC OPE, DEP,PL,
BALANCED Y
DIMLIST_DEST D_RETEARN_M

For period comparison, the member selection for the TIME dimension is defined using the Offset
function.
8.1.3. Formatting
Formatting of the Input forms and Reports are defined in Formatting Sheets.
For Input Forms dedicated to the flow analysis, Excel conditional formatting is used in the
formatting sheet to stripe the cells which correspond to an incorrect Account / Flow
combination. This is defined as follow:
In the report, a local member is defined, with the EPMMemberProperty, to fetch the
FLOWAN property which contains the list of possible flows for each account. This
property is then used in the conditional formatting formula. However, the value of the
FLOWAN property is not visible, because of a specific format applied to this local
member.
In the Formatting Sheet, an Excel conditional formatting is defined for the base level
row. This conditional formatting is based on a formula which checks that the flow ID in
the column header is included in the FLOWAN property value of the account in the row.
When this is not true, the cell is striped.
This conditional formatting works if the following conditions are met:
- The flow ID must be 3 digit long (example: F50)
- The cell named col_flowan must contain the column number with the FLOWAN
property (column 4 in the delivered input forms)
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55
- The cell named row_flow must contain the row number of the flow (row 9 in the
delivered input forms)

Depending on the formatting requirements of the Input form and Reports, several Formatting
Sheets have been defined. For instance, the BS.xlsx file contains 2 reports: Statement of
Financial Position, and Stat. of Fin. Position Short. Each report is assigned to a different
Formatting Sheet, respectively Format STANDARD, and Format BY STYLE.
Empty columns or empty rows are sometimes inserted to make the Input form or Report easier
to read. This is done by inserting local members without formulas.
8.2. Specific Settings
INTERCOMPANY Input Form
To enable the insertion of new interco members by the user, the EPM function Activate
Member Recognition is selected in the Sheet Options.

FLOW ANALYSIS Input Forms
When the flow F15 Net Variation is not enabled for the accounts (i.e. this flow is used as a
control), it is renamed as Control using the Member Names in the report definition.

Statement of Cash Flow, Statement of Changes in Equity and Statement of Comprehensive
Income: these reports contain a VBA macro which enables a special Drill Down from the
report to the corresponding detail lines in the Matrix worksheet.

9. Security settings by team of users

Topic
Consolidation
Managers
Local users Report viewers ADMINS




Task
Profiles
Consolidation
Manager

Key settings:
- Extended rights on
Journals
- Rights to manage
environments,
models, and
dimensions.
- No rights to manage
template
- Access to Reports
and Input Forms
allowed
Data Entry


Key settings:
- No Admin rights
- No rights on
Journals
- No rights to use
template
- Access to Reports
and Input Forms
allowed
Viewers


Key settings:
- Can run
documents
using EPM client
and Web
reports.
(Use of BPF can
be added in the
security
settings)
FULL_TASK


Key settings:
- All tasks allowed
(latest tasks
created in release
10.0 should be
added manually in
this profile)
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Data
access
profiles

ENTRY LEVEL

READ & WRITE

Consolidation model

- ENTITY [ALL]
- AUDITID: [ALL_INPUT]
- CONSOSCOPE:
[G_NONE]

READ ONLY

Consolidation model
- CONSOSCOPE: all
members
Ownership model
- ENTITY [ALL]

Rates model
- RATEENTITY [ALL]

FULL_MEMBER

READ & WRITE

Consolidation model

- ENTITY [ALL]
- AUDITID [ALL]
- CONSOSCOPE[ALL]

Ownership model
- ENTITY [ALL]

Rates model
- RATEENTITY[ALL]




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57
C. Appendix
1. Default.lgf Script Logic
// The DEFAULT.LGF script includes calculations run when data is entered / imported into the current
application.
// WARNING!: for performance reasons, mind the number of COMMIT sections in this script.

//----------------------------------------------------------------------------------------------------------------------------- ---
// Defining the list of audit IDs to which the subsequent calculations should apply: AUDITID_LIST
// In this case: all input audit IDs
//----------------------------------------------------------------------------------------------------------------------------- ---

*XDIM_MEMBERSET MEASURES=YTD
*SELECT (%AUDITID_LIST%,"[ID]",AUDITID,"[DATASRC_TYPE]='I'")
*XDIM_MEMBERSET AUDITID=%AUDITID_LIST%

//----------------------------------------------------------------------------------------------------------------------------- ---
// Calculating E1610 - F10: Net income of the period in the balance sheet
//----------------------------------------------------------------------------------------------------------------------------- ---

// Information: [XDIM_MEMBERSET FLOW=<xx>] is mandatory in the default logic

*XDIM_MEMBERSET FLOW=PL99,F10

// F10 must be included in order to enable difference calculation

*XDIM_MEMBERSET INTERCO=I_NONE
*XDIM_MEMBERSET CONSOSCOPE=G_NONE
*XDIM_MEMBERSET ACCOUNT<>E1610

// Excludes flow F10 and account E1610 from the source data region

*WHEN ACCOUNT.ACCTYPE
*IS "INC"
*REC(FACTOR=1,ACCOUNT="E1610",FLOW="F10")
*ELSE
*WHEN ACCOUNT.ACCTYPE
*IS "EXP"
*REC(FACTOR=-1,ACCOUNT="E1610",FLOW="F10")
*ENDWHEN
*WHEN ACCOUNT
*IS "E2010"
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*REC(FACTOR=-1,ACCOUNT="E1610",FLOW="F10")
*ELSE
*ENDWHEN
*ENDWHEN
*COMMIT

//----------------------------------------------------------------------------------------------------------------------------- ---
// Calculating F15 - net variation as the difference between closing and the sum of other balance sheet
flows
//----------------------------------------------------------------------------------------------------------------------------- ---

// Information: [XDIM_MEMBERSET FLOW=<all>] is mandatory in the default logic


*XDIM_MEMBERSET MEASURES=YTD
*XDIM_MEMBERSET ACCOUNT = <all>
*XDIM_MEMBERSET FLOW=<all>
*XDIM_MEMBERSET AUDITID=%AUDITID_LIST%

*WHEN ACCOUNT.GROUP
*IS "BSA"
*WHEN ACCOUNT.ACCTYPE
*IS "AST", "LEQ"
*WHEN FLOW
*IS "F99"
*REC(FACTOR=1,FLOW="F15")
*ELSE
*WHEN FLOW.PARENTH1
*IS "END"
*WHEN FLOW
*IS "F15"
// nothing
*ELSE
*REC(FACTOR=-1,FLOW="F15")
*ENDWHEN
*ENDWHEN
*ENDWHEN
*ENDWHEN
*ENDWHEN
*COMMIT

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2. Input form - Example of F15-Net Variation
Control



3. Example of FLOWAN Property Values
ID DESCRIPTION FLOWAN
TBS Balance Sheet

A999T Total assets

A199T Non current assets

A119T Property, plant and equipment

A1110 Lands and buildings F20 F30 F55 F00 F99 F09 F50 F70
A1111 Lands and buildings, Dep. F25 F30 F55 F00 F99 F09 F50 F70
A1112 Lands and buildings, Impair. F25 F30 F35 F00 F99 F09 F50 F70
A1120 Tangible exploration and evaluation assets F20 F30 F55 F00 F99 F09 F50 F70
A1121 Tangible exploration and evaluation assets, Dep. F25 F30 F55 F00 F99 F09 F50 F70
A1122 Tang. exploration and evaluation assets, Impair. F25 F30 F35 F00 F99 F09 F50 F70
A1130 Fixtures and fittings F20 F30 F55 F00 F99 F09 F50 F70
A1131 Fixtures and fittings, Dep. F25 F30 F55 F00 F99 F09 F50 F70

Note: In FLOWAN property values, the flows that are discriminating for the account come first (orange)
and common flows that are generally shared between all the accounts of a group come after (green).















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4. Journal.lgf Script Logic

// Measures have to be specified
*XDIM_MEMBERSET MEASURES=YTD

//-------Impact from P&L to BS Equity--------------------

*XDIM_MEMBERSET FLOW=<ALL>
*XDIM_MEMBERSET ACCOUNT=<ALL>

*WHEN ACCOUNT.ACCTYPE
*IS "INC"
*REC(FACTOR=1,ACCOUNT="E1610",FLOW="F10")
*REC(FACTOR=1,ACCOUNT="E1610",FLOW="F99")
*ELSE
*WHEN ACCOUNT.ACCTYPE
*IS "EXP"
*REC(FACTOR=-1,ACCOUNT="E1610",FLOW="F10")
*REC(FACTOR=-1,ACCOUNT="E1610",FLOW="F99")
*ENDWHEN
*ENDWHEN
*COMMIT


//-------Carry over on closing balance--------------------

*XDIM_MEMBERSET FLOW=<ALL>
*XDIM_MEMBERSET ACCOUNT=<ALL>
//This instruction is necessary to force all flows to be included in the execution zone.
//This is because, by default, only FLOW members used in the Manual Journal Entry are selected.

*WHEN FLOW.PARENTH1
*IS "END"
*REC(FACTOR = 1,FLOW = "F99")
*ENDWHEN
*COMMIT
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61

5. CopyOpening.lgf logic script

*RUN_PROGRAM COPYOPENING
CATEGORY = %CATEGORY_SET%
CURRENCY = %CURRENCY_SET%
TID_RA = %TIME_SET%
OTHER = [ENTITY = %ENTITY_SET%]
*ENDRUN_PROGRAM
// Carry over on the closing flow for Manual Journal Entries
//----------------------------------------------------------------------------------------------------------------------------- ---
// 1- Defining the list of Audit IDs which the subsequent calculation should apply to: AUDITID_LIST
//--------------------------------------------------------------------------------------------------------------------------------
*SELECT (%AUDITID_LIST%,"[ID]",AUDITID,"[DATASRC_TYPE] = 'M'")
//----------------------------------------------------------------------------------------------------------------------------- ---
// 2- Calculating the closing flow F99 as the sum of opening + movements
//--------------------------------------------------------------------------------------------------------------------------------
*XDIM_MEMBERSET AUDITID = %AUDITID_LIST%
*WHEN FLOW.PARENTH1
*IS "END"
*REC(FACTOR = 1,FLOW = "F99")
*ENDWHEN
*COMMIT
//--------------------------------------------------------------------------------------------------------------------------------
// 3-Calculating F15 - net variation as the difference between closing and the sum of other balance sheet
flows
//--------------------------------------------------------------------------------------------------------------------------------
*XDIM_MEMBERSET MEASURES = YTD
*SELECT (%AUDITID_LIST_F15%,"[ID]",AUDITID,"[DATASRC_TYPE] = 'I'")
*XDIM_MEMBERSET AUDITID = %AUDITID_LIST_F15%
*XDIM_MEMBERSET FLOW = <all>

*WHEN ACCOUNT.GROUP
*IS "BSA"
*WHEN ACCOUNT.ACCTYPE
*IS "AST", "LEQ"
*WHEN FLOW
*IS "F99"
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*REC(FACTOR = 1,FLOW = "F15")
*ELSE
*WHEN FLOW.PARENTH1
*IS "END"
*WHEN FLOW
*IS "F15"
// nothing
*ELSE
*REC(FACTOR = -1,FLOW = "F15")
*ENDWHEN
*ENDWHEN
*ENDWHEN
*ENDWHEN
*ENDWHEN
*COMMIT



6. Carry Forward Rules






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63
7. Elimination and adjustment Rules





64
8. Naming Convention for Method-based Multipliers
Digit: 4 5 6 7
Possible
values
Separator :
"_"
Interco:
Status &
Method
Interco:
Change
inscope
Separator :
"_"
Value 1 A Al l A All 1 With Flows _ Idem Entity Idem Entity _ E Entity 1 Fixed value 1 Current
Value 2 B
Hol di ng / Ful l /
Proporti onate
D Di vested 2 Without Flows I Interco 2
PCON | POWN | PCON-
POWN
P Prior
Value 3 C Ful l /Proporti onate M Merged
Value 4 H Hol di ng (111) L Leavi ng M Mixed 3
PCON-POWN |
<empty> | PCON-
POWN
Value 5 S
Subsi di ari es (100, 50,
20)
Y Al l but outgoi ng X FiXed 4 PCON | PCON
Value 6 P Proporti onate (50,51) 9 No Interco 9 No Interco
Value 7 E Equi ty (20)
L = D + M 1 With flow: exluding 700 and / or 800
2 Without flow: Including 700 and/or 800
1
Entity: Status & Method
Entity: Change in
scope
Movements / flows
selected for Leaving
companies
2 9
Formula combination Period
10 3 8
Formula's refers
to entity's or
Interco's rate






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9. UJ_VALIDATION Settings

10. First Consolidation Process
10.1. Running the First Consolidation
When operating the consolidation for a given scope for the first time in the application, it is
necessary to populate and process the prior year-end time period for this scope (e.g. 2010.DEC)
in addition to the first required consolidation (e.g. 2011.DEC). This is because the flows
dedicated to the scope change analysis are properly populated by the consolidation engine
provided that at least one automatic journal entry has been detected in the consolidation used
as opening consolidation, which by default is the prior year end (December, year -1).
To do so it is recommended that you import all input-level opening data of the first required
consolidation (flow F00) into the closing data (F99) of the prior year-end time period, including
intercompany breakdowns. Consequently the net variation flow F15 will be calculated as equal
to the closing position (since the opening position is 0 for this preparatory time period), in
particular the breakdown by intercompany in the balance sheet which triggers automatic
eliminations carried over to the closing position. After the consolidation process, the closing
data of the prior year end time period will contain the appropriate source data for the opening
data of the following consolidation, notably the opening automatic journal entries.
10.2. Equity Conversion and CTA
When running the consolidation for one given consolidation scope for the first time in the
application, the cumulated amount of the conversion reserves must be recorded for each foreign
entity in the prior year end consolidation. This can be done by either procedure explained
below.
Importing the equity amounts converted into the consolidation currency (preferred).
This procedure leverages the fact that a specific conversion process applies to equity
accounts: the related converted opening value carried over from the prior period
converted value is maintained as such instead of being calculated from amounts in local
currency and the exchange rates period as it is the case with the other balance sheet
accounts. Consequently, the converted value of equity as well as conversion reserves can
be imported into the prior period used for preparing the opening data. The main steps
are the following:


66
1. Calculate the historical value of each equity account and the corresponding cumulated
conversion reserve; calculate also the conversion difference on investments by entity
(owner) and interco (held company);
2. Import or input the equity accounts opening flow F00 as equal to the closing position F99
in LC; The net variation flow F15 will therefore equal 0, and will not change the
converted closing value by adding up to the converted opening value which is carried
over to F99 as part of the conversion process.
3. Import the converted amounts calculated at step 1 into the application on the
appropriate dimension members:
Accounts: Exxx, E1560 and the YA1810C off-balance account for conversion
differences on investments
Time period: preparatory time period for opening data
Flow: F00
ConsoScope: G_NONE
Currency: consolidation currency against which the converted value is calculated
Audit IDs: INPUT, and possibly other input-type Audit IDs if any local level adjustment
4. Run the corresponding consolidation. The respective opening rate (previous closing rate,
i.e. first consolidation time period-2) and average rate should equal the closing rate so
that no additional currency conversion difference is calculated by the conversion engine.
The automatic adjustment rules will post the NCI on conversion reserves and the CTA on
investments from the imported data.
5. Populate the converted opening data of the first required consolidation by triggering the
CopyOpening Data Management Package with the consolidation currency defined as
parameter.
This is the preferred option because it allows you to book the historical equity value and
conversion reserves in accordance with the set of Audit IDs used for the currency translation
adjustments in subsequent consolidation of the following periods.
Manual Journal Entries
The cumulated conversion reserves can also be booked on the preparatory time period via
manual journal entry using specific Audit IDs dedicated to CTA on equity and investments.
However according to this approach, the CTA cumulated up to the first consolidation on the
one hand and the subsequent CTA on the second hand are then stored on different Audit IDs.

Consequently via data import or manual journal entries, the closing balance of the prior periods
(e.g. 2010.DEC) technical consolidation contains the correct source amounts for the opening
values of the first consolidation time period (e.g. 2011.DEC): local currency amounts, converted
amounts and automatic adjustments.