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Adaptive Planning
Last Updated: 2023-06-23
Example Steps: Automate Minority Interest with Full Consolidation

Example Steps: Automate Minority Interest with Full Consolidation

This example illustrates how to use the full consolidation method to automate minority interest adjustments. When you automate minority adjustments, the data flows from your Income Statement to your Balance Sheet automatically. The data also rolls up to the parent company with the appropriate minority adjustments.
Parent Company owns 80% of a subsidiary called Child Company. You want the Net Income account in the Income Statement to flow properly into the Net Asset account in the Balance Sheet. You also want data to roll up to the parent company with adjustments based on ownership.
Your model:
  • Actuals version.
  • Calendar set up with Months, Quarters, and Years.
  • Your Income Statement is a standard sheet that includes the Net Income general ledger account.
  • Your Balance Sheet is a standard sheet that includes the Equity general ledger account.
  • Contact Workday to enable Consolidation. See Reference: Contact Us.
  • Security:
    • Model includes: sheets, accounts, dimensions, and formulas
       permission.
    • Consolidation
       permission.
  1. To reflect subsidiary ownership, create your level hierarchy.
    The hierarchy makes the data from the subsidiaries roll up to the parent company.
  2. Set up Net Income accounts.
    Net Income in the Income Statement displays periodic income. You create 2 child accounts that rollup to Net Income. 1 of the child accounts is a system account that calculates the minority adjustment. It then reduces the Net Income of the parent based on the ownership percent of the subsidiary.
  3. Set up net asset accounts.
    Net assets are accounts in the Balance Sheet. The YTD Minority Interest pulls data from the Net Income accounts, accumulates, and resets to zero at intervals.
  4. Set up ownership percentages.
    Use a special sheet in the
    Modeling
     area to indicate the ownership percentages. These percentages control how the net income system account calculates the minority adjustment.
  5. Build an initial balance sheet for net assets and seed the initial balances.
  6. Enter data in the Balance Sheet and Income Statement.