Ownership Calculation Process

The Ownership calculation process use the shares stored in the Shares%Owned system account to calculate ownership and the shares stored in the Voting%Owned system account to calculate control percentages. The process calculates the dependents of the selected parent in these system accounts: Percent Ownership (POWN), Percent Consolidation (PCON), Percent Control (PCTRL), Direct Percent Ownership (DOWN), and consolidation method (METHOD).

The system also calculates the Percent Minority (PMIN) amount using this formula:

Percent Consolidation (PCON) - Percent Ownership (POWN) = PMIN

For details on these system-generated Ownership and Consolidation accounts, and consolidation methods including POWN and POWNMIN, see the Oracle Hyperion Financial Management Administrator's Guide.

Percent Ownership

Percent ownership (POWN) represents the percentage of an entity’s non-voting shares that other entities own, directly or indirectly. The system calculates the percentage owned based on the share values stored in the Shares%Owned account. The calculation result is stored in the parent in the POWN system account using the ICP dimension. For example, if the calculation returns 90% for Entity A, the system stores 90 in the parent entity’s POWN account, ICP=A.

Percent Control

Percent control (PCTRL) represents the percentage of an entity based on voting shares that other entities own, directly or indirectly. The system calculates the percentage that the selected parent’s holding company controls of each dependent, based on the share values stored in the Voting%Owned account. The calculation result is stored in the parent in the PCTRL system account using the ICP dimension. For example, if the calculation returns 80% for Entity A, the system stores 80 in the parent entity’s PCTRL account, ICP=A.

Direct Percent Ownership

Direct percent ownership (DOWN) is the percentage of regular non-voting shares of stock owned by each entity. The system calculates the percentage based on the share values in the Shares%Owned account. The calculation result is stored in the DOWN system account using the ICP dimension.

For example, if Entity 002 has a value of 80 in the Shares%Owned account, ICP=holding (the holding company owns 80% of Entity 002), the system stores 80 in the DOWN account , ICP=A for Entity=Group1.

Percent Consolidation

Percent consolidation (PCON) is the percentage of an entity’s values that consolidate to its parent. The system uses the methods defined in the Consolidation Method metadata table to determine the percent consolidation to apply for each entity. If there is no consolidation method assigned to the entity, or the method assigned to the entity does not match a method marked UsedByCalcRoutine, the system uses the percent consolidation corresponding to the percent control.

For example, if the Method account Custom1=Global, ICP=001 has a value of 1, and the percent consolidation in the consolidation method table corresponding to the Global method is 100%, the system stores 100 in the PCON account, ICP=001.

Consolidation Method

Consolidation method is the set of rules that determine how to consolidate data from an entity to its parent. The system proposes this method based on the percent control and the consolidation methods in the Consolidation Method metadata table that have the “UsedbyCalcRoutine” attribute. For each entity for which percent control is calculated, the system assigns the consolidation method corresponding to the percent control for the consolidation method specified in the table. For example, if the percent control calculated for Entity A is 75%, and the consolidation method assigns the GLOBAL method when percent control is from 50% to 100%, the system stores 1 in the parent entity’s Method account, Custom1=GLOBAL, ICP=A.

The exception to this rule is the holding company for the parent. For the holding company, the system does not use percent control to determine the consolidation method. Instead, it assigns the consolidation method that has the IsHoldingMethod attribute.