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My own query is how did we arrive at this 8/10 ) 8 tenth we applied on the 400, I got the 400 on the retained earning movement.
Finn was acquired on Jan 1st 2014. We are preparing the accounts for Dec 31st 2015. That is 2 years. The asset had a useful life on the 1st Jan 2014 of 10 years. Two years later (Dec 31st 2015) they have a remaining life of 8 years. Hence 8/10.
Hello sir
I learned a lot from this lecture, but I have a question when calculating the NCI and RE, with the matrix, the change of NA is calculated, but why the change can be used as the post acquisition RE and post acquisition profit?
this is the same query for me too.
We were used to calculating the movement in retained earnings and posting that as post acquisition profit.
Once reason could be that we are doing the calculation in Year 2.
But still a bit confused.
Why do you take 30% of 270 in nci to calculate sub’s post acqn and 70% of 270 in Retained earnings?