Decrease in NCI?

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    benitez
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    Hi Mike,

    I am in need of some desperate help!

    The question relates to June 2011 – Q1.

    The parent Rose has increased it’s % in the subsidiary by 10% and has paid 19m for it.

    Cash paid 19m
    Decrease in NCI should be 10% of assets at reporting date which is 131 i.e 13.1. which is exactly the way it has been treated as per Grange, Park and Fence in Kaplan P187 – both full goodwill methods. This would leave equity transfers to NCI of 13.1 and 5.9 to RE.

    The question (Rose, Petal and Stem) has used the FV of NCI of 46m at acq and added on the % profit for the year. Why is one question calculating the NCI one way and the other doing it another way? Both questions have FV of NCI given in the question.

    Also the transfer to equity is 10/30 please help.

    Thanks

    Brian

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