Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Group structure changes
- This topic has 3 replies, 2 voices, and was last updated 3 years ago by Stephen Widberg.
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- July 11, 2021 at 6:51 pm #627474
Hello Good day,
I would like to ask if the following is treated the same way as the rest of the situations or is there a difference.Parent co. lends money to Sub co. , after a while , the sub co. converts the loan to shares.
Does this have the same treatment, whereby we decrease the NCI.How exactly would this be dealt with ?
Thank you
July 12, 2021 at 7:28 am #627490I assume this is for exam purposes – I’m not sure which exam question you have seen this in.
Can you please let me know which question it is.
July 12, 2021 at 4:35 pm #627545It wasn’t specifically in a question. It came up while we were in a group discussion and someone mentioned it.
Any hints on this would be greatly appreciated.
Thank you
July 13, 2021 at 8:34 am #627580In group accounts
Parent now owns more shares in Sub
If there is a NCI it would proportionately get smaller
Usually, in life, there is no NCI, so it doesn’t matter
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