equity method

Consolidation / Consolidation (FI-LC/EC-CS)

The equity method is used for consolidating affiliated companies as well as subsidiaries or joint ventures (refered to as consolidation units in EC-CS), which are not consolidated using the purchase or proportional methods.

The individual financial statement data (also refered to as reported financial data) of an equity company is not taken into account in the consolidated financial statements. Therefore you do not need to enter the data into the Consolidation System.

Only changes in the stockholders' equity of the company are taken into consideration; these affect the investment value stated in the consolidated balance sheet.

Therefore, the term "valuation method" also applies here.