This guide explains how to record a company's ownership, acquisition details, and changes in ownership in GATHER.nexus. Keeping these details up to date helps ensure that ownership percentages and consolidated results are calculated correctly.
1) Open the Company
Go to the Company list.
Find the company you want to update.
Click the Edit icon under the Actions column.
The Edit Company panel opens on the right.
2) Mark the Company as a Subsidiary
Find the Subsidiary Company option.
Select Yes if the company is owned by another company in your group.
Select No if the company is a parent or holding company.
When Yes is selected, additional ownership details become available.
3) Choose How the Company Joined the Group
Select one of the following:
Acquired an existing company if the company was purchased.
Formed a new entity if the company was newly established by the group.
The information required changes depending on your selection.
4) Select the Holding Company
Select the company that owns the subsidiary from Holding Company.
The available companies are shown in the dropdown.
Companies that are disconnected from QuickBooks Online or Xero are identified with a status indicator.
GATHER.nexus prevents ownership relationships that would create a circular structure.
5) Enter Details for an Acquired Company
When Acquired an existing company is selected, enter:
Holding Company
Acquisition Date
Shareholding Percentage
Purchase Consideration
Currency
Intercompany Accounts, where applicable
The Non-Controlling Interest (NCI) is calculated automatically based on the ownership percentage.
For example, if the group owns 70%, the remaining 30% is automatically calculated as NCI.
Intercompany Accounts
Select the relevant intercompany Profit & Loss accounts for acquisition and disposal consolidation calculations. Only Profit & Loss accounts are used for this purpose; Balance Sheet intercompany accounts are not included in these calculations.
6) Enter Details for a Newly Formed Company
When Formed a new entity is selected, enter:
Holding Company
Incorporation Date
Parent's Ownership %
Intercompany Accounts, where applicable
NCI is calculated automatically.
For example, if the parent owns 80%, the remaining 20% is calculated as NCI.
Purchase Consideration and Goodwill are not shown for a newly formed company.
Intercompany Accounts
Where applicable, select the relevant intercompany Profit & Loss accounts used for acquisition and disposal consolidation calculations. Balance Sheet intercompany accounts are not used for this purpose.
7) Record Changes in Ownership
Use + Step acquisition / disposal to record a later change in ownership.
For an additional purchase:
Enter the date.
Enter the additional percentage acquired.
Enter the purchase consideration and currency.
GATHER.nexus updates the ownership percentage and NCI automatically.
For example, if you originally own 80% and acquire another 10%, your ownership becomes 90% and NCI becomes 10%.
For a sale of part of your ownership:
Enter the date.
Enter the percentage sold.
Enter the relevant purchase consideration information.
For example, if you own 80% and sell 10%, your ownership becomes 70% and NCI becomes 30%.
You can record multiple purchases and disposals for the same company, provided ownership remains between 0% and 100%.
8) Save Your Changes
Review the information entered.
Click Update.
Your ownership details are saved.
You can return to the company at any time to update its ownership information. Changes that affect consolidation are automatically reflected in the related calculations.
Important Note
Changing Subsidiary Company from Yes to No displays a confirmation message because related consolidation adjustments may be removed.
Review the warning carefully before confirming the change.
Need help? Visit gather.nexus, click the chat icon in the bottom-right corner, or email us at [email protected] for assistance.