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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Consolidated income statments – profit attributable to parent / NCI
Hello Mike,
I understand that if a subsidiary sells products to a parent then the NCI’s profit should be reduced by its share of the URP.
But if the parent sells products to the subsidiary is it correct that profit attributable to the owners of the parent’s profit is reduced by 100% of the URP?
Thanks,
Dan
Yes. And if the subsidiary sells to the parent, 100% of the pup is deducted from the subsidiary’s post acquisition retained earnings thereby reducing the amount which is used to calculate the nci’s share of those subsidiary post acquisition retained earnings