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Dear Sir
So the mistake I made was to re-use the 20000 which was already included in the ‘Net assets’ of which the NCI owned 25 percent.
on the plus side, I was right about me being wrong 😀
I think i just got confused. No malice aforethought.
thanks for the clarification
regardsDear Sir,
(sorry for the delay in response, I took [gasp] a day off from studying)
(clearly i’ve made a mistake somewhere but)
In working 4:
NCI at 25 percent ownership.
fair value at acquisition: 25 percent of net assets at acquisition:
: 0.25 X 28000 = 7000
Plus: 25 percent of post acquistion:
: 25 percent x 2500 = 625
total: 7625but the NCI also has an ‘opening retained earnings’ of 20000
in my head the answer should be 27625 to include the opening RE.
Am I mistaken?
furthermore, can you see where I’m mistaken ? ( personally, i really can’t)thanks for your time
Dear sir
I dont know why I didnt think of it as being the ‘Fair value at date of reclassification’.
thanks for the help and the trivia !all the best
PS
I’m disappointed that the fvadorc is fictional! but it IS memorable 😀Dear Sir
I understand there is no such as thing as ‘margin profits’, I used the phrase to help in my own understanding.
I’ll go through your lecture again. I may have missed something the first time.
thanks for your help in this matter
kind regardsSorry, Sir.
I didn’t understand that.the ‘margin-profit’ is only for items that are sold.
but the cost of goods (Cost of Sales?) is Higher than anticipated because the wasted goods still carry the Cost of Sales but bring no profit.Since ‘Margin-profits’ are based on Sales and wasted products are un-sold products.
is that correct?
If not, i think i’m confused.
regardsplease ignore the above message.
I found what I missed
apologiesps for any future students reading this message
check the number of SHARES bought BY the parent company and then compare that number to the Subsidiary’s total shares
that will give you a percentage ownership
all the best