GATHER.nexus automatically calculates the adjustments needed when preparing consolidated financial information. The calculations take into account acquisitions, ownership percentages, changes in ownership, and foreign currency.
1) Acquisitions
When an existing company is acquired, GATHER.nexus uses information such as:
Acquisition Date
Ownership percentage
Purchase Consideration
The company's financial position at the acquisition date
These details are used to calculate the appropriate adjustments for the consolidated results.
2) Minority Interest After Acquisition
After a company has been acquired, GATHER.nexus calculates the portion of its earnings belonging to owners outside the Group.
The calculation begins from the day after the acquisition date.
For example, if the acquisition takes place on 14 February, the post-acquisition activity begins from 15 February for the relevant calculation.
3) Changes in Ownership
When you purchase additional ownership in a company, the ownership percentage changes from the date of the transaction.
For example:
Original ownership: 80%
Additional ownership: 10%
New ownership: 90%
NCI: 10%
The same principle applies when part of the ownership is sold.
4) Foreign Currency
When a company's currency is different from the Group's currency, GATHER.nexus converts the company's figures into the Group currency using the applicable exchange rate.
For Profit & Loss information, the applicable average monthly rate is used.
For Balance Sheet information, the applicable month-end rate is used.
5) Year-End
At the end of the financial year, amounts relating to the current year's earnings are carried into retained earnings as part of the year-end process.
6) Review the Result
The resulting adjustments are reflected in the Working Paper and consolidated figures.
This allows you to review how acquisitions, ownership changes, minority interest, and foreign currency affect your consolidated results.
Important Note
Keeping your acquisition dates, ownership percentages, and ownership changes up to date helps ensure the resulting consolidated figures remain accurate.
Need help? Visit gather.nexus, click the chat icon in the bottom-right corner, or email us at [email protected] for assistance.