FDM.2:4 - Solution
FDM.2:4.1 - Start with the financial consequence being examined
State whose payment, position, exposure, control or report is at issue and the relevant time. Identify the actual entities and accounts involved before selecting a group label.
For a payment, find the party that bears the obligation. For a portfolio question, identify the investments or exposures being compared. For a required report, obtain the applicable reporting boundary from the responsible practice. Use SIE.5 when the entities themselves or their continuity are disputed.
FDM.2:4.2 - State why these members belong together
State the question the grouping serves and its inclusion criterion. The criterion may concern a common founder, control, contractual support or inclusion in the consolidated accounts under the applicable reporting rule. Establish membership at the time relevant to that question. Preserve the underlying positions when a group view is produced.
Different criteria can produce overlapping groups. Keep them connected when the receiving use needs them. A single hierarchy need not carry every financial relation.
FDM.2:4.3 - Recover what connects the positions
For a proposed support or resource-availability conclusion, inspect the actual connecting relation. A guarantee, committed facility, permitted transfer, control relationship and expected voluntary payment answer different questions.
Establish the relevant parties, content, limits, conditions and timing. A guarantee can give the creditor a further conditional claim without placing cash in the primary debtor’s account now. Permission to transfer does not establish a transfer obligation. A support commitment does not establish timely performance. Control can matter while restrictions still prevent a particular use of funds.
When support is merely expected, preserve it as a scenario assumption with the reason for that expectation. A risk account may reasonably consider it; an account of cash already available needs the stronger fact it claims.
FDM.2:4.4 - Build the warranted aggregate
Combine only amounts whose meaning, time, currency and inclusion rule are adequate for the receiving use. Preserve restrictions and conditional relations that can change the result. Apply the relevant reporting or specialist rule where valuation, conversion, netting or elimination is required; the group label does not supply those rules.
For a payment question, derive the debtor’s usable funds at the payment time after other relevant receipts and obligations. For a risk question, retain the exposures and dependencies needed to understand adverse scenarios. Do not silently use the risk aggregate as the payment-feasibility balance.
FDM.2:4.5 - Return the boundary and its financial meaning
Return the relevant parties, membership rule, positions and justified aggregate or support conclusion. State what remains unresolved where it affects use: an entity identity, support condition, restriction, payment time or aggregation rule.
Use SIE.6 to combine the relevant claims into a qualified answer once their financial meanings are established. Its result can retain several claims or report conflict, non-comparability or an unresolved premise. FDM.3 develops conditional support flows; FDM.4 establishes the effects of an actual transfer. A sufficient ordinary boundary can be used without constructing every other group view.