25.2 Task 5 — OpenTuition Forums

AArahn5y ago

Hi John I hope you are well. This is a question to do with consolidation. I do not understand Task 5 from Question 25.2. I hope you can help me work this out

John MoffatTutor5y ago#1

The NCI in the SOPL is 30% of the current years profit of $15M For the SOFP, Note 1 of the question says that the fair value of the NCI at the date of acquisition was $11.8M The NCI's share of post acquisition profit is 30% x (10.280 - 2) = $2.484M

AArahn5y ago#2

Hi John Why is it 30 % ? Kind regards, Arahn

John MoffatTutor5y ago#3

Bury has 30,000 shares. 21,000 are owned by Black, so 9,000 are owned by the NCI. 9,000/30,000 = 30%

AArahn5y ago#4

Thanks John ! Arahn

John MoffatTutor5y ago#5

You are welcome :-)

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