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Hi,
I have been through the answer to Q1 Dec 2009 and am struggling to understand where the ‘other side’ of a transaction is. When the Group acquires a further 20% of the shares of Park for $90, the NCI received is valued at $86.2, meaning there is a loss of $3.8 to go to group equity. The NCI is therefore reduced by $86.2, and the Other equity reduced by $3.8, but where/how does the other side of the $90 make itself known in the Balance Sheet?
Thanks
Iain
Without knowing the question by heart, is the entry not dealt with by a transfer from parent’s equity to the nci of $3.8, followed by a reduction of the nci by a payment of $90?
I hope so!
Good luck next Tuesday
Sorry for late reply. Thanks Mike. I hope I did enough to pass. I thought the paper wasn’t too bad all in all.
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