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Calculate NCI when there is intragroup interest

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Calculate NCI when there is intragroup interest

  • This topic has 0 replies, 1 voice, and was last updated 4 days ago by linh823.
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  • December 14, 2025 at 6:41 pm #723951
    linh823
    Participant
    • Topics: 1
    • Replies: 1
    • ☆

    Hi Sir,
    When there is intra group loan interest, the adjustment entries are:
    Dr Interest income (RE of P)
    Cr Interest expense (RE of S)
    Is this correct?
    In BPP, it is said that the entries are:
    Dr Interest income (Group)
    Cr Interest expense (Group)

    The question from BPP is like this:
    Brigham Co has owned 70% of Dorset Co for many years. It also holds a $5 million 8% loan
    note from Dorset Co. The financial statements of Dorset Co show a profit for the year ended 31
    December 20X6 of $1.3 million. Calculate Profit attributable to NCI
    Here is my answer:
    Profit of S = 1,300,000
    Intra finance expense = 400,000
    Profit attributable to NCI = (1,300,000+400,000)*30% = 510,000
    Is my answer correct?

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