Hi,
Could you please explain why do we need to remove part of the dividend paid by sub-subsidiary in NCI share of profit working? The dividend paid by subsidiary is not relevant when we calculate NCI share of profit, I don't understand why it is different in case of sub-subsidiary in complex groups. Thanks in advance for your help.
S
Suzanne·
Example 1
Summarised P&L - Operating profit + investment income does not equal Profit before tax - missing expenses?
P&L should be
Matty - Profit for the year $98 less dividend $20 = $78
Luke - Profit for the year $112 less dividend $15 = $97 (NCI @ 20% = $19.4)
Ben - Profit for the year $78 (NCI @ 40% = $31.20)
Total Consolidated profit (78+97+78) = $253
Could you please explain why do we need to remove part of the dividend paid by sub-subsidiary in NCI share of profit working? The dividend paid by subsidiary is not relevant when we calculate NCI share of profit, I don't understand why it is different in case of sub-subsidiary in complex groups. Thanks in advance for your help.
Summarised P&L - Operating profit + investment income does not equal Profit before tax - missing expenses?
P&L should be
Matty - Profit for the year $98 less dividend $20 = $78
Luke - Profit for the year $112 less dividend $15 = $97 (NCI @ 20% = $19.4)
Ben - Profit for the year $78 (NCI @ 40% = $31.20)
Total Consolidated profit (78+97+78) = $253
Profit attributable - NCI ($19.40+31.20) = $50.60
Profit attributable - Parent ($78 - $50.60) = $202.40