In certain countries, for example in the Nordics and the Netherlands, there are statutory requirements for each holding company in the group to report the value of their investments in subsidiaries not at original cost, but at (their share of) the current ‘Net Asset Value’ (=NAV). With the NAV method, all changes in the subsidiary equity and or asset valuation are reported in the stand-alone accounts of the parent company. This leads to a sometimes cumbersome process called “Equity Pickup” (EPU).
Different solutions have been on the market for this problem. Big software vendors offer ‘suite’ solutions that you can run next to your solutions for other finance processes. Consequently, you have to re-run your Equity Pickup process every time the data is reloaded. In OneStream’s smart CPM the process can be integrated, which increases the speed and accuracy of your data. However, there are different ways of implementing Equity Pickup and choosing the ‘right way’ truly matters.
In the whitepaper you learn
- The difference between the Equity Method and Equity Pickup
- Various levels of Equity Pickup implementation in CPM solutions
- What makes OneStream's unified CPM unique for integrated Equity Pickup