Ultimate ownership is a concept within accounting standards for consolidation. 

When the nature of the relationship changes over the same reporting entity in the upper levels of the consolidation structure, ultimate ownership connections are used. For an example an associate company in the lower level of the structure could become a subsidiary to the top level due to multiple ownership holdings by different parties in the same group.

According to the above example A LTD becomes a subsidiary to P LTD.  Therefore, in that case A LTD should be connected as an ultimate ownership connection to the TOP NODE in the consolidation structure. Accordingly there will be changes in the consolidated adjustments made in the consolidation process based on the consolidation method changes.

Ultimate ownership is a concept within accounting standards for consolidation. 

When the nature of the relationship changes over the same reporting entity in the upper levels of the consolidation structure, ultimate ownership connections are used. For an example an associate company in the lower level of the structure could become a subsidiary to the top level due to multiple ownership holdings by different parties in the same group.

 

According to the above example A LTD becomes a subsidiary to P LTD.  Therefore, in that case A LTD should be connected as an ultimate ownership connection to the TOP NODE in the consolidation structure. Accordingly there will be changes in the consolidated adjustments made in the consolidation process based on the consolidation method changes.

So this means if the Parent (P LTD) owns more than 50% than we need to set the checkmark ultimate ownership?

Ultimate ownership is a concept within accounting standards for consolidation. 

When the nature of the relationship changes over the same reporting entity in the upper levels of the consolidation structure, ultimate ownership connections are used. For an example an associate company in the lower level of the structure could become a subsidiary to the top level due to multiple ownership holdings by different parties in the same group.

 

According to the above example A LTD becomes a subsidiary to P LTD.  Therefore, in that case A LTD should be connected as an ultimate ownership connection to the TOP NODE in the consolidation structure. Accordingly there will be changes in the consolidated adjustments made in the consolidation process based on the consolidation method changes.

So this means if the Parent (P LTD) owns more than 50% than we need to set the checkmark ultimate ownership?

is this only happening if the A LTD is owned by multiple parties in the same group?

Hi, 

Correct - the concept of ultimate ownership only applies in this scenario where A LTD is owned by multiple entities in the same group.