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.
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?
Fame333 says
The 30% represents NCI share of post acquisition profit and the 70% represent Parent share of profit acquisition profit
Hasina90 says
So if Rey Acquired 60% and everything else stayed the same would the NCI be 40% of 1850?
Eziko says
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.
no1lover says
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.
Microje says
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?
parag says
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.
Fame333 says
I guess it’s the same thing, if you call it post acquisition or change..it’s thesame..the change from acquisition till Consolidation
Aaron.Abraham123 says
Why do you take 30% of 270 in nci to calculate sub’s post acqn and 70% of 270 in Retained earnings?