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July 28, 2019 at 3:33 pm
Hello Sir I have one doubt that is Retained earnings Part Well The Thing which is not clear to me is Post Acquisition Part As You Have Explained With 3 Or 4 Examples So My question is Why Are Yu Takin $750 As Post Acquisition RE.. From Other Example And Considering And Taking $150 Value In Every Example For RE…???
October 25, 2018 at 10:04 am
Hello, I am confused a bit with a formula for NCI proprotionate method.
In Kaplan book (p.384) it says for the proportion of net assets methods: NCI Value =NCI%*Fair Vailue of Net Assets at A C Q U I S I T I O N DATE
You say (4:38): NCI Value =NCI%*Net Assets at REPORTING DATE Why?
October 25, 2018 at 10:35 am
I would say the correct treatment of the NCI in the example 5, shall be:
NCI@acquisition= NCI%*FV of Net Assets at acquisition= 20%*(250+750)=200 NCI%*S’s post-acquisition profit = 20%*(900-750)=30 Total NCI= 200+30=230
December 31, 2018 at 3:03 pm
You will find the method used in the Kaplan materials and the one used here will give the same answer each time it is used when using the proportionate share of net assets method.
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