Investment Analysis Reports

The Consolidated Investment Analysis - Template report is meant to validate that a parent company's investment balance equals the net asset balance of its ownership stake in a subsidiary for investments accounted for under the Equity Method of accounting. For example, a subsidiary has net assets of 100 million and is 90% owned by the parent company. Using the Equity Method of accounting, the parent will carry 90 million in its "Investment in Subsidiary" account (100 million * 90% = 90 million). When the parent's investment account does not equal the net asset balance of its ownership stake in the subsidiary, the Investment Analysis report will display the out of balance amount. 

The following could contribute to an out of balance:

• Noncontrolling interest hasn't been recorded for converted general ledger balances
• The parent has not picked up its portion of the subsidiary's net assets in converted general ledger balances
• The Run Noncontrolling Interest or Equity Pickup tasks have not been completed for the period
• Create an adjusting journal entry or run the appropriate tasks to correct the out of balance.

The Consolidated Investment Analysis (No EPU) - Template is designed for customers who do not perform equity pickup on their investments. The report, once updated, calculates the economic return on investments over the life of the investment.

If you have subsidiaries with noncontrolling interest, you must be opted into the new noncontrolling interest feature to use these reports, as described in the Admin Guide here. When you roll forward Noncontrolling Interest Beginning Balances, use a “Beginning Balance for NCI” journal source.

Run the report for the consolidation hierarchy that includes the parent and its subsidiaries accounted for under the Equity Method. If you are not including the subsidiaries in consolidation, a separate hierarchy may be needed for use in the report.  If you are posting CTA to a statistic account for use in Equity Pickup and NCI, be sure to select the correct reporting Book for the translation currency selected when running the reports.

Below is additional information on each of the columns in the reports. 

Consolidated Investment Analysis - Template

• Ledger Currency: The Ledger Currency of the subsidiary.
• Equity: Total equity for the subsidiary.
• Net Assets: Total net assets for the subsidiary.
• Parent Investment Balance: The balance in the Parent's investment accounts that are tagged with the subsidiary as an intercompany affiliate. 
• Ownership % (Calc based on Parent Investment): Calculation that takes the parent's current investment balance divided by the subsidiary's net assets. You can compare this against the company's ownership details. 
• NCI % (Calc based on NCI Amount): Calculation that takes the subsidiary’s NCI equity balance divided by the subsidiary’s net assets. You can compare this against the company's ownership details. 
• NCI: The balance in the NCI Offset Ledger Accounts from the Noncontrolling Interest Activity elimination rule for the subsidiary. 
• Out of Balance Amount: Calculates the amount that the parent's investment is out of balance by compared to its calculated ownership in the subsidiary's net assets. Calculated by taking the difference in the Parent’s Investment Out of Balance and the NCI Equity.
• NCI Activity: The balance in the NCI Target Ledger Accounts from the Noncontrolling Interest Activity elimination rule for the subsidiary. 
• (Hidden) Parent Investment Out of Balance Amount: Calculated by taking the difference in the subsidiary's net assets and the parent's investment balance.

Below is a sample of the report output:

Consolidated Investment Analysis (No EPU) - Template

• Ledger Currency: The Ledger Currency of the subsidiary.
• Equity: Total equity for the subsidiary.
• Net Assets: Total net assets for the subsidiary.
• Parent Investment Balance: The balance in the Parent's investment accounts that are tagged with the subsidiary as an intercompany affiliate. 
• (Hidden) Ownership % (Calc based on Parent Investment): Calculation that takes the parent's current investment balance divided by the subsidiary's net assets. You can compare this against the company's ownership details. 
• Investment Returns: Calculation that takes the difference in the Hidden Parent Investment Out of Balance column and the NCI column.
• NCI % (Calc based on NCI Amount): Calculation that takes the subsidiary’s NCI equity balance divided by the subsidiary’s net assets. You can compare this against the company's ownership details. 
• NCI: The balance in the NCI Offset Ledger Accounts from the Noncontrolling Interest Activity elimination rule for the subsidiary. 
• NCI Activity: The balance in the NCI Target Ledger Accounts from the Noncontrolling Interest Activity elimination rule for the subsidiary. 
• (Hidden) Parent Investment Out of Balance Amount: Calculated by taking the difference in the subsidiary's net assets and the parent's investment balance.

Below is a sample of the report output:

Out of the Box?

• You can modify this report template per the details listed below to make the desired output.

Technology

• Composite Report
• Matrix Report

Functional Area

• Financial Accounting

Customer Central Package

• RPT Consolidations
• Financial Reporting Dashboard

WD Version

• Tested on 2025R2

Complexity

• Low

How do I get this?

• Details on getting content into tenant here.

Prerequisites (also called out in the Configuration Package Description)

• Journal Source: Beginning_Balance_for_NCI, Noncontrolling_Interest

Once loaded into the tenant you can find the report by searching for it. The information listed below provides the data sources used by the report and security domains needed to be able to run the report. 

Data Source and Data Source Filter

• Journal Lines for Financial Reporting
• Journal Lines for Company and Reporting Time Period

Security Domain

• Reports: Financial Accounting

Once you've successfully migrated the report using Customer Central, follow the setup steps below to update the report based on the desired report output. If you would like to make additional changes than those outlined below, we recommend making these updates first and then creating a copy of the report to make those additional changes to. 

In addition to attaching the template report definition to this page, an example that illustrates the below updates is also attached for your reference. 

• Hierarchy Structure:
  • In the report’s General settings, add a hierarchy structure for the Ledger Account business object. This allows for ledger account summaries to be used within the lookup data rows and columns.
• Data Columns: Data columns determine the data to display based on filter criteria and column prompt selections. The following updates are needed.
  • Equity:  Update the Ledger Accounts and Summaries prompt to specify summaries for Net Income and Stockholder’s Equity.
  • Net Assets: Update the Ledger Accounts and Summaries prompt to specify summaries for Total Assets and Total Liabilities (i.e Net Assets).
  • Parent Investment Balance: Update the Ledger Accounts and Summaries prompt to specify the Investment and Provision accounts from your Equity Pickup elimination rules. Ensure that in the Map Fields for Join section the Company business object has Intercompany Affiliate as the Join Field.
  • NCI: Update the Balance Sheet Ledger Accounts and Summaries prompt to specify the NCI Offset Ledger Accounts from the Noncontrolling Interest Activity elimination rules.
  • NCI Activity: Update the Ledger Account prompt to specify the NCI Offset Ledger Accounts from the Noncontrolling Interest Activity elimination rules. This results in all NCI Activity in accounts except the account(s) specified in the prompt.

Additional Changes

• You can enable the reports for display on the Dashboard by configuring the Worklet options on the Output tab.
• Formatting such as number formats, borders, etc. can be updated based on preference.
• You may choose to default some of the report prompts for your users such as Company Hierarchy, Book, or others.
• Update the Prompt Instructions to remove the default instructions provided.
• In the Composite Report Settings under Additional Info, update the Comments and Brief Description sections.