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Greetings sir,
For 25.4
Please demonstrate for Task 3, how do you get the answer for Owners of the parent – through direct calculation, without subtracting the 712,000 total from the NCI 65,000. I am getting a wrong figure.
(650-48 unrealised profit) + (.75 X 260) = 797,000
Although I will explain, I really do not know why you should want to waste time doing this in the exam.
In both real life and is exams, we do as I explain in my free lectures – calculate the profit belonging to the NCI and leaving the amount attributable to the shareholders of the parent company as a balancing figure!!Livertons profit includes 150 dividend received from Everpool. Given that this will have been paid out of Erverpools profit, to include it in the consolidation SOPL would be accounting for it twice.
So the amount for the parent company is (650 – 150 – 48) + (0.75 x 260) = 647
Thankyou very much sir . It was just to increase my understanding from all angles. Very much appreciated.
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