participations evaluees selon la methode de mise en equivalence

English translation: controlling interests consolidated according to the equity method

GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)
French term or phrase:participations evaluees selon la methode de mise en equivalence
English translation:controlling interests consolidated according to the equity method
Entered by: Sarah Walls

02:28 Apr 16, 2005
French to English translations [PRO]
Bus/Financial - Finance (general) / financial statements
French term or phrase: participations evaluees selon la methode de mise en equivalence
I'm translating financial statements, and have tentatively translated this as "investments estimated according to the equity method". I'd just like confirmation or correction from someone familiar with terminology in this field as to the usual translation of this phrase. TIA
Sarah Walls
Australia
Local time: 09:01
controlling interests consolidated according to the equity method
Explanation:
"participations" here are significant shareholdings. There are several ways of translating:
- "controlling interests": my preference;
- "shareholdings": this can cause confusion with "holdings" ("valeurs mobilières de placement";
- "investments": to be avoided in my opinion as this can cause confusion with "investments" ("immobilisations financières").

"mise en équivalence" (often abbreviated as "MEE") refers to the method of consolidation. It's the "equity method" meaning that the accounts are consolidated according to the percentage holding (as apposed to full consolidation where the subsidiary is entirely dependent).


So: something along the line of "equity-method consolidated investments" or "controlling interests consolidated according to the equity method".

--------------------------------------------------
Note added at 222 days (2005-11-24 09:49:36 GMT) Post-grading
--------------------------------------------------

Important note:

A fellow Proz member has pointed out two things:
- the "equity method of accounting" is an ALTERNATIVE to consolidation, so they are not actually "consolidated" but rather "introduced into the consolidated accounts".
- the degree of "control" is necessarily less than actual control, and "controlling interests" overstates the degree of control. US GAAP refers to "significant influence", but this is a defined term with a precise meaning which does not exactly correspond to the French "participation". A good alternative to "controlling interests" here would be "participating interests".

IFRS (IAS 28) refers to "investments in associates".
This corresponds perfectly to "participations MEE", but ONLY if the company is intending to apply IFRS. Pre-IFRS French accounting does not follow the percentage distinctions used in IFRS, so this term should be used with care.
Selected response from:

Christopher RH
Local time: 01:01
Grading comment
Thanks very much. Your answer was must instructive and enlightening.
4 KudoZ points were awarded for this answer



Summary of answers provided
5 +1controlling interests consolidated according to the equity method
Christopher RH
3 +1shareholdings ....
Charlie Bavington (X)
3below
Ghyslaine LE NAGARD


Discussion entries: 5





  

Answers


3 hrs   confidence: Answerer confidence 3/5Answerer confidence 3/5
below


Explanation:
if participation was "profit sharing" "mise en équivalence" would mean calculated based on all the various element such as salary, time worked etc...
for example :
1 employee earning AUD 5000/month, worked a total of 200 days that year (excluding holiday days, sick leave etc) would have AUD 3000 profit sharing for the reference year

1 employee earning AUD 5000/month, worked a total of 211 days that year (excluding holiday days, sick leave etc;) would have AUD 3165

It all depends on what the company has set up and what is to be taken into account, however not knowing what the "participations" refers to in your document this is only one of many possibilities.

I would question the client.

Ghyslaine LE NAGARD
New Caledonia
Local time: 10:01
Specializes in field
Native speaker of: Native in FrenchFrench, Native in EnglishEnglish
PRO pts in category: 40

Peer comments on this answer (and responses from the answerer)
neutral  Christopher RH: this isn't related to profit-sharing. Questioning the client may make him wonder about giving you this kind of work!// sorry - that was an over-hasty and badly-worded remark. Finding out what "mise en éq." means should be done before talking to the clien
5 hrs
  -> You have very little faith in your licents ! so you'd prefer to put something which might be completely wrong ? What about ethics and professionalism ?
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6 hrs   confidence: Answerer confidence 3/5Answerer confidence 3/5 peer agreement (net): +1
shareholdings ....


Explanation:
As you've tentatively suggested 'investments', I would think this is "participations" in its sense of shareholdings/stakes held in other companies.
evaluer - more 'accurate' than just estimated, IMO, it really means "valued".
"mise en equivalence" is a reference to the consolidation method, which also gives credence to the "participations" being shareholdings (and not, say, a profit share).
So, it literally means "shareholdings valued and consolidated by the equity method" but there may be a neater, more standard way of expressing this.

Charlie Bavington (X)
Local time: 00:01
Works in field
Native speaker of: Native in EnglishEnglish
PRO pts in category: 121

Peer comments on this answer (and responses from the answerer)
agree  Christopher RH: why a 3? This answer is worth a 4 at least!
2 hrs
  -> You're very kind. It's a 3 because I wasn't sure that my ultimate translation as on the last line was the best way of expressing it, altho' I *was* sure I knew that it "meant".
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8 hrs   confidence: Answerer confidence 5/5 peer agreement (net): +1
controlling interests consolidated according to the equity method


Explanation:
"participations" here are significant shareholdings. There are several ways of translating:
- "controlling interests": my preference;
- "shareholdings": this can cause confusion with "holdings" ("valeurs mobilières de placement";
- "investments": to be avoided in my opinion as this can cause confusion with "investments" ("immobilisations financières").

"mise en équivalence" (often abbreviated as "MEE") refers to the method of consolidation. It's the "equity method" meaning that the accounts are consolidated according to the percentage holding (as apposed to full consolidation where the subsidiary is entirely dependent).


So: something along the line of "equity-method consolidated investments" or "controlling interests consolidated according to the equity method".

--------------------------------------------------
Note added at 222 days (2005-11-24 09:49:36 GMT) Post-grading
--------------------------------------------------

Important note:

A fellow Proz member has pointed out two things:
- the "equity method of accounting" is an ALTERNATIVE to consolidation, so they are not actually "consolidated" but rather "introduced into the consolidated accounts".
- the degree of "control" is necessarily less than actual control, and "controlling interests" overstates the degree of control. US GAAP refers to "significant influence", but this is a defined term with a precise meaning which does not exactly correspond to the French "participation". A good alternative to "controlling interests" here would be "participating interests".

IFRS (IAS 28) refers to "investments in associates".
This corresponds perfectly to "participations MEE", but ONLY if the company is intending to apply IFRS. Pre-IFRS French accounting does not follow the percentage distinctions used in IFRS, so this term should be used with care.

Christopher RH
Local time: 01:01
Works in field
Native speaker of: Native in EnglishEnglish
PRO pts in category: 67
Grading comment
Thanks very much. Your answer was must instructive and enlightening.

Peer comments on this answer (and responses from the answerer)
agree  Charlie Bavington (X): that sounds like what I was trying to say - well put :-)
35 mins
  -> I hate to disagree but you did say it - and just as well

neutral  rkillings: Make that "accounted for using the equity method", and do not use the word "consolidated" AT ALL.
2545 days
  -> you are right (and you are that "fellow Proz member" who corrected me 7 years ago too)
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