Hi John,thanks for the lecture.I had adoubt regarding th consolidated accounts and the non controlling interest. Why do we not calculate only 80% of non current Assets,current assets and current liabilities when making a consolidated account? Can you please clarify that.
hi! I did not understand this video at all… watched it over and over again, I am confused why in P’s accounts there are non -controlled numbers instead of controlled ? and completely lost where are figures then from P controlled accounts?
Have you watched the lectures on the previous chapters first?
I do not know what you are referring to when you mention ‘non-controlled numbers’ – I do not use those words and nobody uses those words 馃檪
P and S are completely separate legal entities and produce their own financial statements. P’s SOFP is showing P’s own assets and liabilities.
The consolidated SOFP is showing it as if there was one big company – it shows the total of P and S’s assets and liabilities just as though it was one big company. However when we come to show the share capital, retained earnings etc., it is there that we show how much of the total net assets belong to shareholders of P and how much of the total belongs to the non-controlling interest.
Because we are required by accounting standards to show the group as though one big company – so all assets and all liabilities. The fact that 20% of S is owned by the minority is dealt with in the minority interest calculation.
We use cookies to improve your experience on our site and to show you relevant advertising. To find out more, read our updated privacy policy and cookie policy.OkRead more
Hi John,thanks for the lecture.I had adoubt regarding th consolidated accounts and the non controlling interest.
Why do we not calculate only 80% of non current Assets,current assets and current liabilities when making a consolidated account?
Can you please clarify that.
Because the consolidated SOFP is showing the group as though it is one big company owning everything.
hi!
I did not understand this video at all…
watched it over and over again, I am confused why in P’s accounts there are non -controlled numbers instead of controlled ? and completely lost where are figures then from P controlled accounts?
Have you watched the lectures on the previous chapters first?
I do not know what you are referring to when you mention ‘non-controlled numbers’ – I do not use those words and nobody uses those words 馃檪
P and S are completely separate legal entities and produce their own financial statements. P’s SOFP is showing P’s own assets and liabilities.
The consolidated SOFP is showing it as if there was one big company – it shows the total of P and S’s assets and liabilities just as though it was one big company. However when we come to show the share capital, retained earnings etc., it is there that we show how much of the total net assets belong to shareholders of P and how much of the total belongs to the non-controlling interest.
i do not understand why in the consolidated SFP non-current assets were not calculated as 80% of S plus P’s.
Because we are required by accounting standards to show the group as though one big company – so all assets and all liabilities. The fact that 20% of S is owned by the minority is dealt with in the minority interest calculation.