What is change in indirect investment in SAP EC-CS - Consolidation?

SAP Term: change in indirect investment

• Component: EC-CS

• Component Name: Consolidation

• Description: The activity of changing the group share in a consolidation unit, providing the share does not stem from a change of the direct direct investment in the unit. This activity is possible only in multilevel groups. A change in indirect investment in a consolidation unit occurs if the group share in an immediate upper unit changes at a higher hierarchy level because of: a step acquisition a transfer, or a divestiture

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• Key Concepts: 
  Change in indirect investment is a term used in the EC-CS Consolidation component of SAP. It is a measure of the change in the value of an entity’s investments in subsidiaries, associates, and joint ventures that are not owned directly by the entity. This measure is used to determine the amount of equity that is attributable to the parent company. 
  
  How to use it: 
  In order to calculate the change in indirect investment, the value of the investments at the beginning and end of a period must be determined. This can be done by taking into account any changes in ownership, such as acquisitions or disposals, as well as any changes in the value of the investments due to market fluctuations. The difference between these two values is then used to calculate the change in indirect investment. 
  
  Tips & Tricks: 
  When calculating the change in indirect investment, it is important to take into account any changes in ownership or market fluctuations that may have occurred during the period. Additionally, it is important to ensure that all relevant information is taken into account when calculating this measure. 
  
  Related Information: 
  The change in indirect investment is an important measure for determining the amount of equity attributable to a parent company. It is also closely related to other measures such as return on equity and return on assets. Additionally, it can be used to assess the performance of an entity’s investments over time.