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  1. Avatar of Swati says

    Dear Sir,

    F7 December 2008 Question 1 Pedantic:

    I am a bit confused with Working 4A for NCI (40%). Do we not deduct the 40% of pup from here? why?
    And when do we deduct it from NCI?

    Thanks..

    • Avatar of MikeLittle says

      Without me looking up the question, let me ask first of all “Which company made the sale?”

      If the answer is Pedantic, then the adjustment is in Pedantic’s records / retained earnings so will have no affect on the entitlement of the nci

      If it wasn’t Pedantic that made the sale, please post again and I’ll check out the question

      OK?

  2. avatar says

    I still don’t understand where the figures are coming from :(

    @alextrunghuynh, In a situation where Steve Scott tells you the value of the goodwill attributable to the nci, you still need to calculate the value of the nci INVESTMENT.

    The way to do this is to realise that the nci investment is equal to their proportional share of the S fair valued net assets at date of acquisition + the goodwill attributable to them

    So, for example, ( 30% x FV of SNA @ DOA ) plus the 1.5 million

    OK?

    • Avatar of MikeLittle says

      @alextrunghuynh, In a situation where Steve Scott tells you the value of the goodwill attributable to the nci, you still need to calculate the value of the nci INVESTMENT.

      The way to do this is to realise that the nci investment is equal to their proportional share of the S fair valued net assets at date of acquisition + the goodwill attributable to them

      So, for example, ( 30% x FV of SNA @ DOA ) plus the 1.5 million

      OK?

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