Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Profit attributable to NCI
- This topic has 3 replies, 2 voices, and was last updated 8 years ago by MikeLittle.
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- October 28, 2015 at 3:13 pm #279397
Hi,
I am just trying to recap what are the items I would need to deduct/add from a subsidiary profit for the year before I apply the % of non-controlling interest so to determine what is the profit attributable to NCI:
-unrealized profit for sales from subsidiaries to parent.
-unrealized profit for non-current assets sales from subsidiay to parent.
-Depreciation for assets held by the subsidiary valued at fair value for consolidation purposes.
-goodwill impairement.
– canceled financial income/expenses for infa-group loan notes.something else?
thank you
Regards,
S.
October 28, 2015 at 4:46 pm #279417To arrive at this year’s subsidiary profit in order to find the basis from which to calculate the nci’s share ……
I would not treat goodwill within that working ( though I can’t justify that comment – it’s just that I would charge the nci with their share of any goodwill impairment as a separate consideration)
The intra-group loan interest would not be adjusted in getting to the profit figure to be apportioned. The omission of that finance income / finance expense is a cosmetic adjustment to ensure that we don’t include intra-group activity within the consolidation. But it doesn’t affect the nci profit share
Other than those two points, you should be fine
November 9, 2015 at 11:15 am #281250Thank you Mike.
November 9, 2015 at 11:42 am #281253You’re welcome
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