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In chap 23 eg 6
Equity :
Share capital 500
RE 1040
Attributable to NCI 1540
NCI 260
Total Equity $1800Could you pls explain what does the amount attributable to NCI mean?
It should be called total equity of parent and then we add NCI to get Total equity of Parent and NCI combined (isn’t it?)
It is the sum of the equity share capital plus the group retained earnings, and is simply what is owned by the parent’s shareholders.
In other words, total equity attributable and owned by the parent’s shareholders is $1540 whereas the NCI shareholders owned $260. The total equity therefore would be $1800 owned by the shareholders of parent and NCI combined?
Is that correct?
I get confused because in your lecture you said that $1540 is attributable to NCI so i thought it is owned by NCI shareholders (although it is owned by the parent’s shareholders so don’t you say that it is attributable to parent and not NCI?!
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