Oracle Financial Consolidation Hub User Manual page 118

North Americas Group does not own Mexico through any other branches, so no
multiple parent calculations are performed.
Next, North Americas Group is consolidated to Americas Group. At this point, Mexico
is owned through additional branches: Americas Group > Mexico, Americas Group >
South Americas Group > Mexico and Americas Group > South Americas Group >
Colombia > Mexico.
Americas Group >Mexico
Americas Group owns 10% of Mexico. The minority interest consolidation rule will
produce the following consolidation entry in the currency of Americas Group, US
dollars.
Organization
15.100
15.100
The consolidation rule will calculate the balance as the change in minority ownership
times the trial balance: (-0.10) * 900 = -90. This balance is added back.
Americas Group > South Americas Group > Mexico
Americas Group owns 60% of South Americas Group, which owns 7% of Mexico. Thus,
Americas Group owns 60% * 7% = 4.2% of Mexico through this branch. The minority
interest consolidation rule will produce the following consolidation entry in the
currency of Americas Group, US dollars.
Organization
15.100
15.100
The consolidation rule will calculate the balance as the change in minority ownership
times the trial balance: (-0.042) * 900 = -37.8. This balance is added back.
Americas Group > South Americas Group > Colombia > Mexico
Americas Group owns 60% of South Americas Group, which owns 100% of Colombia,
which owns 8% of Mexico. Thus, Americas Group owns 60% * 100% * 8% = 4.8% of
Mexico through this branch. The minority interest consolidation rule will produce the
following consolidation entry in the currency of Americas Group, US dollars.
13-12 Oracle Financial Consolidation Hub User's Guide
Line Item
3650 – Minority Interest B/S
5450 – Minority Interest P/L
Line Item
3650 – Minority Interest B/S
5450 – Minority Interest P/L
Debits Credits
90
90
Debits Credits
37.8
37.8