🚀 Unlocking the True Value in Your Group Forecasts
When a group consolidates multiple entities—some majority‑owned, some associates, and others with minority interests—the financial picture can quickly become complex and opaque. At the same time, hidden investments like goodwill can distort the real health of your group. The good news? With Forecast 5 you can bring clarity, control and true insight into every layer of your consolidation forecast.
đź“Ś Minority & Associate Interests: What You Need to Know
A minority interest refers to a shareholder with no controlling influence, typically holding less than 50% of equity.
An associate interest is where the parent company holds significant influence, generally more than 50% equity.
The key impact:
🔹For minority interests — all revenues and expenses of the subsidiary are included, minus the minority’s share of net profit & dividends.
🔹For associate interests — only the group’s share of net profit and dividends are included; revenues and expenses of the associate aren’t aggregated.
đź’ˇ Goodwill: Why It Matters in Consolidation Forecasts
Goodwill arises when the investment - per the parent company books - in a subsidiary exceeds the net assets of the subsidiary. This difference is Goodwill.
If an entity decides that the goodwill is impaired, it must be written down to its recoverable amount. Once goodwill is impaired, the impairment cannot be reversed.
Forecast 5 creates an asset for Goodwill which can be reduced as appropriate where impairment is recognised.
How Forecast 5 Simplifies the Process
🔹Automates the elimination of minority interests and the correct inclusion of associates.
🔹Reflects goodwill on the balance sheet and allows for impairment adjustments within the forecasting model.
🔹Produces consolidated forecasts that remain accurate and reliable—no surprises, no hidden distortions.
🔍 Final Word
With Forecast 5 you can bring full transparency to your group forecasting—whether you're dealing with minority interests, associate entities or goodwill adjustments. This means you get a clearer picture, make smarter decisions, and present financials with confidence.
