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October 12, 2018 at 12:50 pm
I have the same question as rachelmin:
“Why do we calculated the additional or decrease in NCI differently?
Ie if we are looking to purchase more of Hulme we take 10/40 *NCI but when we decrease ownership like with jones we take 20% of the NA+gw”
February 15, 2019 at 4:56 pm
simply because when you sell you need to work out what you selling i.e. percentage of NA + GW and when you buy you need work out the percentage of NCI.
August 3, 2018 at 10:38 pm
Why do we calculated the additional or decrease in NCI differently? Ie if we are looking to purchase more of Hulme we take 10/40 *NCI but when we decrease ownership like with jones we take 20% of the NA+gw
November 20, 2018 at 2:26 am
they are in fact consistent. the key bit here is the base factor these numbers are on.
NCI is base on its 40% ownership. so dividing NCI by 40% is the whole ownership.
Whole ownership is (NA+gw)by definition.
so 10/40 *NCI = 10% / 40% *NCI = 10% *(NCI/40%) = 10% (NA+gw)
same layout as the Jones’ formula.
July 18, 2018 at 9:57 pm
why is the retained earnings for the subs calculated using net assets rather than retained earnings on the BS ?
June 18, 2018 at 1:02 am
on SBR example 5 on Change in Group Structure
This is my workings
Working No 5: Group Retained Earnings
100 % P 110
+ w2 70% x 40 28
+w2 70% x 10 7
and then have
Working No ^: Other Component of Equity
100% P 10
why are we using the old percentages on GRE and adding the figures that affect OCE on GRE
September 1, 2018 at 6:52 pm
Yep, thought the same. I think he just clubbed all the ‘Reserves’ in one so it’s really the Group RE+OCE working.
October 6, 2018 at 10:17 am
Retained earnings=Retained Earning+OCE in the exam?
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