subsequent consolidation

Consolidation (EC-CS)

This consolidation of investments activity can occur for the first time in the period of first consolidation for any consolidation unit. It is not affected by any changes in investments of immediate investors.

When applying the purchase method or proportional consolidation, the activity adjusts minority interests to account for changes in investee equity.

When applying the equity method, the activity updates the immediate investors' equity in earnings of affiliates, as with the changes of the proportional equity of the unit consolidated using the equity method.

Consolidation (FI-LC)

This consolidation of investments activity can occur for the first time in the period of first consolidation for any internal trading partner. It is not affected by any changes in investments of immediate investors.

When applying the purchase method or proportional consolidation, the activity includes the amortization of goodwill and eliminated hidden reserves (fair value adjustments), and the adjustment of minority interests to account for changes in investee equity.

When applying the equity method, the activity primarily updates the immediate investors' equity in earnings of affiliates, as with the changes of the proportional equity of the company consolidated using the equity method.

An exception to the above definition is that it is also customary to refer to all consolidations that follow the first consolidation as subsequent consolidations.