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Sir
Why is it that when we calculate NCI sometimes we add NCI at acquisition + post acq profits(like question plateau) but sometimes we don’t add NCI at acquisition but just the post acq profits (like question Viagem)Thank you
I don’t know! In a balance sheet question, the correct way is to take the NCI at acquisition and add the NCI’s share of post acquisition retained earnings.
In a profit or loss question, the NCI is their share of this year’s profit after tax
In a profit or loss question, your examiner most frequently sets the question as a mid-year acquisition so time apportionment becomes relevant.
What isn’t relevant in a profit or loss question is the value of the NCI at date of acquisition EXCEPT for the calculation of goodwill
i like to know fron you is the method which is described below will be acceptabe in term of pup on nca.
as in kaplan book,we calculate pup as difference in cv at subsidiary book(which sold the nca) and cv in parent books and then deduct from subsidiary net asset list as follow(from ch 9 example 1 ot notes)
—————————at acqu date ——————————–at csfp date
share capital ————–200000 ————————————200000
premiun ——————–10000 ————————————-10000
retained earnings———59333 ————————————-64000
Pup on nca – ————————————————————15000you have deducted 20000 from sub and then adding 5000 to parent but net effect is 15000.will the above treatment is correct and not(logic) and secondly how the dividen is treated in above way and if sub is incurred loss which is in your answer then dividend which it pay for two month is from pre acquistion profits and dividend from pre acq pofit is deducted from retained earning.plz explain this matter(dividend).
thanks for answering my previous question
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