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Hi,
can you please explain why we deduct 16,000 in W4 of example 3 for the NCI calculation for M in V?
I can’t for the life of me understand it.
thanks,
Ali
Because if we don’t deduct the investment in the subsubsidiary from the subsidiary’s net assets, we shall be double counting that amount
When sub invested in subsub effectively that investment acquired that much value of subsub’s assets. But by taking the TOTAL nci in subsub’s assets we are already including the indirect nci’s share of those subsub assets
So to then also take the nci share of subsidiary’s assets will be to double count the indirect nci in subsub
Is that any clearer?
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