Group ownership

When you transfer data from the entity context to the group context, ownership is relevant for the entities that have these consolidation methods:

• Proportional

  Ownership is important for the recognition of the balance sheet and profit and loss share that is transferred to the group. Ownership can be anything, but the control must be 50% so the entity is recognized as proportional. Then the values of the balance sheet and profit and loss are transferred with the ownership percentage, which can be even 40% or 60%. For example, if a joint venture of four entity parents has 25% of ownership and 50% of control, then all values that are transferred to the group are calculated with 25%.

• At Equity

  Ownership percentage is used to recognize all effects. For example, the profit and loss result or depreciation of hidden reserves that affect the value of the participation account.

• Full

  Ownership is important for the calculation of minorities. For example, if ownership is 75%, then a 25% minority is calculated. The remaining 75% of the capital is eliminated against the participation of the parent.

Control is important to define consolidation methods. To identify the appropriate consolidation method, you must consider the percentage of control over an entity.

The calculated group ownership and control percentages are called a group effective ownership.