when using proportionate NCi you have to gross is up. its notional goodwill, as in the accounts of the parents you have to take into consideration 100% consolidation( parents share and nci share)

And also, we were told that explanations should be set out in paragraphs not in points or numbers. Since now it is computer based, is it okay to number the points?

compared to what i learnt from the example given in the lectures on convertible debentures, the effective interest rate was used to calculate the interest expense on the debt component but in this example i see it is the discount rate that was used to calculate the interest expense, So which is the right one ?

a bit late but the effective interest rate is used for the interest expense. if unavailable or not sure of the effective interest rate, then the simple discount rate can be applied to calculate the interest expense.

murza says

why was 100 divided by 80 while calculating goodwill?

asmita10 says

when using proportionate NCi you have to gross is up. its notional goodwill, as in the accounts of the parents you have to take into consideration 100% consolidation( parents share and nci share)

qq419850428 says

Thanks for the demostration

Ronnie92 says

And also, we were told that explanations should be set out in paragraphs not in points or numbers. Since now it is computer based, is it okay to number the points?

Ronnie92 says

compared to what i learnt from the example given in the lectures on convertible debentures, the effective interest rate was used to calculate the interest expense on the debt component but in this example i see it is the discount rate that was used to calculate the interest expense, So which is the right one ?

hamza47 says

a bit late but the effective interest rate is used for the interest expense. if unavailable or not sure of the effective interest rate, then the simple discount rate can be applied to calculate the interest expense.