Handling Changes in Ownership

Tax Reporting handles ownership, based on changes over time, by using a weighted ownership calculation. Because Tax Reporting is YTD, a blended ownership rate is used to handle changes in ownership.

By default, the account for calculating the weighted ownership is TRCS_NIBTAdjusted. Optionally, you can change the Account member. See Defining Account Properties.

Weighted Ownership Account

For the weighted ownership account, the Movement, Data Source and Consolidation members are fixed and cannot be changed.

  • Data Source: "TRCS_PreTax"
  • Movement: "TRCS_CurrentTaxBYTotal"
  • Consolidation: "FCCS_Entity Total"

To set the weighted ownership account:

  1. From the Home page, open the Navigator Navigator icon.
  2. Under Create and Manage, select Dimensions.
  3. Optional: Select the Account that you want to use. If no Account is selected, TRCS_NIBTAdjusted is used.
    Select the Account dimension

The weighted calculation presents two outputs:

  • TRCS_Percent Current Consol Weighted (WeightedPCON)

  • TRCS_Percent Current Ownership Weighted (WeightedPOWN)

These outputs are generated per Jurisdiction and Multi-GAAP. Different weights can be generated, depending on the Jurisdiction and Multi-GAAP.

Scenario Frequency Attribute

Weighted Ownership is calculated, based on the Scenario Frequency Type attribute for the Scenario dimension. If there is no prior period, then effective weightedPOwn is #MISSING and no data is rolled up

Table 18-5 Prior Period

Current Period Monthly Quarterly Semi Annually Annually

P1

P12 (Prior Year)

Invalid

Invalid

Invalid

P2

P1

Invalid

Invalid

Invalid

P3

P2

P12 (Prior Year)

Invalid

Invalid

P4

P3

Invalid

Invalid

Invalid

P5

P4

Invalid

Invalid

Invalid

P6

P5

P3

P12 (Prior Year)

Invalid

P7

P6

Invalid

Invalid

Invalid

P8

P7

Invalid

Invalid

Invalid

P9

P8

P6

Invalid

Invalid

P10

P9

Invalid

Invalid

Invalid

P11

P10

Invalid

Invalid

Invalid

P12

P11

P9

P6

P12 (Prior Year)

P13

P12 (Current Year)

P12 (Current Year)

P12 (Current Year)

P12 (Current Year)

P14

P12 (Current Year)

P12 (Current Year)

P12 (Current Year)

P12 (Current Year)

To set the Scenario Frequency Type attribute:

  1. From the Home page, open the Navigator Navigator icon.
  2. Under Create and Manage, select Dimensions.
  3. Optional: Under Dimension, select the Scenario for which you want to set the Frequency type.
  4. Click Edit Edit icon, and then select the Attributes Values tab.
  5. Under Available Attribute Values, expand the Frequency Type, select the frequency you want to use, and then click Add.

    Note:

    After changing the Frequency Type for the Scenario, previous data is not removed after the database is refreshed. Clear the affected intersections manually.

    Set Frequency Attribute

Ownership Percentages Definitions

  • End of Period Ownership % (POwn) - The ownership % entered in the Ownership Management screen for a specified Scenario/Year/Period/Entity relationship.

  • End of Period Consolidation % (PCon) - The calculated Consolidation % by the Ownership Management screen for a specified Scenario/Year/Period/Entity relationship.

  • Beginning of Year Ownership % (BOYPOwn) - The ownership % from P12 of the prior year, unless there is no prior year, in which case it is End of Year Ownership %.

  • Beginning of Year Consolidation % (BOYPCon) - The Consolidation % from P12 of the prior year, unless there is no prior year, in which case it is End of Year Consolidation %.
  • Weighted Ownership % (weightedPOwn ) - The weighted value of the ownership % based on the amount of ownership % for a Period, weighted by the Weighted Ownership Account. The first period of every year’s ownership % is equal to the end of period ownership %:
    • First Period, RTA Period, Audit Period

      weightedPown = POwn

    • All other periods, the following formula is used

      weightedPown (Account) = ( ( weightedPown Formula arrow priorPeriod * priorPeriod Formula arrow ownershipWeightedAccount ) / ownershipWeightedAccount ) + ( ( pown * ( ownershipWeightedAccount - ownershipWeightedAccount Formula arrow priorPeriod + ) ) / ownershipWeightedAccount)

  • Weighted Consolidation % (Pcon) -The weighted value of the consolidated %, based on the amount of consolidation % for a period, weighted by the Weighted Ownership Account. The first period of every year’s consolidation % is equal to the end of period Consolidation %.
    • First Period, RTA Period, Audit Period

      weightedPCon = PCon

    • All other periods, the following formula is used

      weightedPCon (Account) =( ( weighted PCon Formula arrow priorPeriod * priorPeriod Formula arrow ownershipWeightedAccount ) / ownershipWeightedAccount ) + ( ( pcon * ( ownershipWeightedAccount - ownershipWeightedAccount Formula arrow priorPeriod + ) ) / ownershipWeightedAccount)

  • Beginning of year ownership adjustment (BOYOwnAdj)- On an account basis, this is the additional ownership required to go from the Beginning of Year ownership % to the end of Period Ownership % for all beginning of year movements.

    The formula is FCCS_Proportion Formula arrow BOYOwnAdj = ("FCCS_Entity Total" * (Pown - BOYPOWN)) + (Pown * BOYOwnAdj Formula arrow "FCCS_Entity Total")

  • Current year ownership adjustment (CYOwnAdj) - On an account basis, this is the additional ownership required to go from the Weighted Ownership % to the end of Period Ownership % for all current year movements, as well as total exchange rate adjustments (FXRateAdj).

    FCCS_Proportion Formula arrow CYOwnAdj = ( ("FCCS_Entity Total" + FXRateAdj -> "FCCS_Entity Total") * (Pown -WeightedPOWN )) + (POWN * CYOwnAdj Formula arrow "FCCS_Entity Total")

The effect of changes in ownership are, for all TEMP accounts, the value in the closing balance movement for the FCCS_Proportion member is End Of Period Ownership % of the closing value of the FCCS_Entity Total at the parent currency. If the TRCS_NIBTAdjusted account is zero, Weighted Ownership equals the end of period ownership.

Ownership Effect by Account and Movement

Different Ownership rates depending on the combination of movement and account.

Table 18-6 Ownership Effect by Account and Movement

Account Movement Rate

Time Balance Type = "Balance" (Balance Sheet Accounts)

All movements

End of Period Ownership %

Descendants of TRCS_NIBTAdjusted

All movements

Weighted Consolidation %

Temporary Adjustments

Current Year movements (including Pre_Tax and Exchange Rate adjustments)

Weighted Ownership %

Temporary Adjustments

Beginning of Year Movements

Beginning of Year Ownership %

Temporary Adjustments

Closing Balance

End of Period Ownership %

Permanent Adjustments

Current Year Movements

Weighted Ownership %