Please could you advise the model answer for this question part b. its ownership transfer ci-nci (use percentage method), but the BPP answer use proportion when calculate increase in nci which make me confused.
my calculation per below:
nci: (134na+12gw)x8%-3impairment@20%=8.68
adjustment to parent's equity is 18-8.68=9.32
Thank you
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BPP kit question 66 Marchant
8y ago#1Hi,
Thanks for highlighting this, it all looks a bit odd. When we have a disposal with control retained we look at the transfer from the net assets to the NCI and would calculate this as follows:
8% x (134 + 8) = 11.68
Whereby now based upon the answer to the question they are increasing the NCI using the current NCI, which ties in to what has been done in the workbook/study text too.
As far as I'm aware there hasn't been a change in the calculation for the change in ownership, so even though the answer above is slightly different to the one in the answer, I'd still use the calculation in the way that we've covered it. I seriously doubt that you'd be penalised.
Thanks
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