Related Party Disclosures

Longview provides the ability to view related party disclosure information in order to analyze intercompany transactions not eliminated within certain entity hierarchy structures.

Related party disclosures - overview

The Related Party Disclosures App provides the ability to isolate intercompany balances that have not been eliminated either inside a sub-consolidation structure or outside of the consolidation root structure.

Example of INSIDE

In the example above, D has an intercompany balance with F.

There is no elimination of D and F under sub-consolidation B since the common parent is A. Running the Related Party Disclosure App on sub-consolidation B would highlight that D and F have not been eliminated.

Example of OUTSIDE

Entity Z is an entity held at 20% and therefore is not part of the main consolidation hierarchy A. It is consolidated using the Equity Pickup calculation.

In the example above, D has an intercompany balance with Z.

The intercompany transaction with Z will never be eliminated since there is no common parent anywhere within the consolidation structure. When running the Related Party Disclosures on consolidation root A or sub-consolidation B, this intercompany balance would be highlighted as non-eliminating.

Accessing related party disclosures

1. Select the Consolidate module.
2. Select the Reports category.
3. Expand Analysis.
4. Click Related Party Disclosures. The Related Party Disclosures - User Selections dialog appears.

Related party disclosures app

1. The Related Party Disclosures - User Selections dialog displays and provides the following options:

   1. Accounts: Select the intercompany account(s) symbol(s) to analyze.

   2. Entities: Select the Consolidation, Sub-Consolidation, or Non-Consolidation Total Entity symbol to analyze.

      Note: You cannot select any intercompany elimination or adjustment entities.

   3. Currency: Select the currency symbol to analyze.

      Note: Valid currency selections are parent currencies under CURRENCIES_Actual.

   4. Time period: Select the year-to-date time period to analyze.

   5. Scenario: Select the scenario symbol to analyze.

      Note: This selection option will only display if you have more than one leaf scenario under the Scenarios_Actual  hierarchy.

2. Once the selections have been made, Click OK. The Related Party Disclosures App will appear.
3. For each intercompany transaction, the following columns will be displayed:

   1. Entity: Displays the entity symbols underneath the Consolidation, Sub-Consolidation or Non-Consolidation Total structure selected that contain intercompany transactions not eliminated within their consolidation structure.

   2. Trading Partner: Displays the trading partner in the intercompany transaction not eliminated within the selected consolidation structure.

   3. Account: Displays the intercompany account symbol related to the intercompany transaction not eliminated within the selected consolidation structure.

   4. Parent Entity: Displays the parent entity symbol.

   5. Currency: Displays the currency for which the intercompany amount is being displayed.

   6. Transaction Type: Displays whether the transaction is:

      • INSIDE: Amount has not been eliminated within the entities consolidation structure, but it has been eliminated within the main consolidation root.

      • OUTSIDE: Amount has not been eliminated within the entities consolidation root structure.

   7. Amount: Displays the amount of the intercompany transaction.

   8. Additional Dimensions: Displays any additional dimension symbols related to the intercompany transaction not eliminated within the selected consolidation structure.

      Note: Additional Dimension columns will only display if your system has any custom dimensions, and the associated ASICD(X)INPUT attribute is set to a parent symbol. For more information, see “Updating the intercompany input symbols for custom dimensions” in the Solutions Administrator Guide.