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Hi how do we explain calculation of non controlling interest for vertical group in words ?
Please advise, Mike. Thank you…
Direct non-controlling interests are, presumably, not a problem.
The indirect nci is calculated as “the percentage nci in the subsidiary multiplied by the subsidiary’s interest in the sub-subsidiary”
If you apply that principle on each occasion ( it’s in the shape of a letter “r” if you were to draw it on your working 1 ) that will give you the INCI in the sub-subsidiary.
Add that to the direct nci and that will give you the total nci in the sub-subsidiary
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