CSFP

Hi my DEAR Tutor, I have a question

————————————————————- Laimonas ——–Kristine
——————————————————————$’000——– $’000
Non-current assets
investment in Kristine————————————– 50
other ————————————————————23——— 16
Current assets————————————————- 36——— 64
Total assets—————————————————–109——— 80
$1 Equity shares———————————————– 60———- 20
Retained earnings———————————————- 40———- 50
Current liabilities————————————————– 9———— 10
Total equity and liabilities ————————————–109———– 80

Laimonas has proposed a dividend of $16,000 Kristine has proposed a dividend of $10,000 Both of the above were proposed before the year end, but not adjusted for. Laimonas acquired 90% of Kristine’s share capital 4 years ago when the balance on Kristine’s retained earnings was $30,000.
The value of the nci shareholding at the date of acquisition was $5,500

Net assets of Kristine——AD————–DR———–Post acquisition period
SC——————————20000 ———-20000————nil
RE——————————30000———–50000———–20000

cost of invesment——–50000
NCI at FV—————————-5500
net identifiable asset————-(50000)
goodwill——————————5500
impairment(5500*80%)———–(4400)
Revised goodwill———————1100

GRE–38040
RE of Laimonas-40000
Share of Laimonas(20000*90%)-18000
Impairment(4400*90%)——–3960
Laimonas didivdend pay—-16000

Kristines dividend pay is inside of 20000,that is why

NCI at date—7060
NCI at FV—-5500
NCI share(20000*10%)-2000
impairment(4400*10%)-440

In your calculation why U have got NCI at DAte 6060 ?need explanation?
Thanks in advance