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- December 3, 2016 at 8:50 pm #353525
At the acquisition date, are the acquired subsidiary books affected by the revaluation and
its depreciation ?
if that so, consequently, the NCI profit share will be affected ?
December 3, 2016 at 8:55 pm #353529No, not affected
The fair value adjustments are for the consolidation – there’s no requirement for the subsidiary to amend its records
But the nci WILL be affected because the nci only appear as a part of the consolidation process
December 3, 2016 at 9:13 pm #353535You mean the NCI will be affected by both OCI and depreciation ?
If so, the subsidiary profit at its books should be adjusted first, and that what we agreed shouldn’t be ?
December 3, 2016 at 11:18 pm #353559Ok, I am sorry, only the first point , whether the NCI affected by OCI ?
Thanks
December 4, 2016 at 8:18 am #353613If the OCI occurred pre-acquisition, it will be taken into account in both working W2 Goodwill and it will NOT be taken into account in working W3 Consolidated Retained Earnings because it is not post-acquisition
OK?
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