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November 24, 2020 at 9:49 pm
Hello Sir – Could you please explain why we include the 20% fair value of non controlling interest under the nc-liabilities?
John Moffat says
November 25, 2020 at 8:20 am
We don’t. Firstly it is the fair value at the date of acquisition plus the NCI’s share of the post-acquisition retained earnings. Secondly we show it separately because it represents the part of the group’s net assets that belongs to the NCI as opposed to that owned by the shareholders of the parent company.
November 25, 2020 at 6:12 pm
Thank you for your answer and shed of light on this Sir – much appreciated.
October 18, 2020 at 6:29 pm
Thank you so much!! I have been so scared of Group Accounting and decided to come back to FA to really learn it and this has been a life saver! Feeling a lot more confident. I have just completed this and the previous 2 lectures on consolidate SFP and it all makes sense now!
You are the best!
October 19, 2020 at 7:10 am
Thank you for your comment 🙂
April 27, 2020 at 12:06 pm
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.
April 27, 2020 at 4:03 pm
Because the consolidated SOFP is showing the group as though it is one big company owning everything.
February 2, 2020 at 2:49 pm
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?
February 2, 2020 at 5:41 pm
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 🙂
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.
October 22, 2018 at 7:47 pm
i do not understand why in the consolidated SFP non-current assets were not calculated as 80% of S plus P’s.
October 23, 2018 at 7:08 am
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.
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