Accounting For Acquisitions And Disposals; Overview - Oracle Financial Consolidation Hub User Manual

Accounting for Acquisitions and Disposals

Overview

Accounting for acquisitions and disposals is a way to tie changes in the consolidation
hierarchy to consolidation entries. Each time a consolidation hierarchy structure
changes, you can associate acquisition and disposal entries to the change.
You can manually enter Acquisition and Disposal entries or generate them through
Acquisition and Disposal rules.
When you run consolidation, Acquisition and Disposal entries are generated in the
Acquisition and Disposal category. Acquisition and Disposal is broken up into four
categories, or types:
• Acquisition
• Disposal
• Share Issue
• Share Issue with Acquisition
An acquisition and disposal transaction has the following parameters.
• From Consolidation Method - The original consolidation method applied to the
relationship.
• To Consolidation Method - The new consolidation method applied to the
relationship.
• From Percentage - The original ownership percentage of the child entity in the
relationship.
• To Percentage - The new ownership percentage of the child entity in the
relationship. For Share Issue with Acquisition, this is the Post Acquisition
Accounting for Acquisitions and Disposals 17-1
17