Ownership management

This table shows ownership-related terms that are used in Financial Consolidation:

Term	Description
Owner	An entity that has shares of another entity. An owner may be a parent entity but not necessarily.
Owned or Intercompany	An entity whose shares have been bought by another entity.
Group	A group of entities that are included in the consolidated financial statements that are prepared by the parent entity.
Parent entity	A holding entity of a group. A group must always have one parent entity assigned.
Control	Control is important to the definition of consolidation methods, such as Full, Proportional, At equity, or None. To identify the appropriate consolidation method, you must consider the percentage of control over an entity.
Ownership	Required for the calculation of the effective ownership (direct and indirect minorities). For example, if the control is 50%, then the consolidation method is set to Proportional. If the ownership is 60%, then 60% of the financial statement is transferred to the group context.

An entity becomes a group member when the entity is controlled directly or indirectly by the holding entity of the group based on the effective ownership calculation. All entity relationships must first be set up with Entities Ownership. After that, all entities relationships can be taken into the group context with the Groups Ownership results based on the effective ownership calculation.

The ownership interest is represented through the possession of shares or capital stock. In Financial Consolidation, the possession percentage is relevant to understanding how much an entity contributes to another entity, which can own another entity, and how the financial statements of the owned entity are recognized in the parent entity.

The controlling interest defines the power of an investor over an investee to manage the investee's business. Even if an investor owns the majority of an investee's capital stock, they may not control the investee's business. Control is usually achieved through ownership but can also be achieved through contracts that can lead to the majority of votes. Therefore, the controlling interest is not ownership-dependent but can be maintained independently. Sometimes, you must correct the calculated control manually.

The ownership concept in Infor d/EPM is based on changes in ownership and control. You can only add a change request where you define an increase or decrease in ownership percentage or control percentage, or both for a certain period. The total percentage of ownership and control is automatically rolled up to future periods. The total ownership and control percentage stays the same in ongoing periods until another change happens.

This table shows an example how the total ownership or control percentage can change with time through change requests to increase:

	Jan 2020	Feb 2020	Mar 2020	Apr 2020	May 2020	Jun 2020	Jul 2020
Current ownership/control	0%	0%	20%	20%	20%	70%	70%
Change request (increase)		20%			50%
Total ownership	0%	20%	20%	20%	70%	70%	70%