If you consolidate Residual Values, Consolidator calculates them using the Liquidation method for both the Shareholder Value and Dividend Discount models. The Perpetuity method applies to the Economic Profit model. The Future Value of Residual Value (FVRV) from the child entities are added to calculate the FVRV for the consolidated parent. The consolidated FVRV is discounted using a weighted average discount rate from the child entities. If the Cost of Capital account group is blocked, discount rates in the consolidated parent are used instead of the weighted average.
If you block the Residual Value account group is blocked, you must manually enter data in these accounts of the consolidated parent: