Hi Sir, When there is intra group loan interest, the adjustment entries are: Dr Interest income (RE of P) Cr Interest expense (RE of S) Is this correct? In BPP, it is said that the entries are: Dr Interest income (Group) Cr Interest expense (Group)
The question from BPP is like this: Brigham Co has owned 70% of Dorset Co for many years. It also holds a $5 million 8% loan note from Dorset Co. The financial statements of Dorset Co show a profit for the year ended 31 December 20X6 of $1.3 million. Calculate Profit attributable to NCI Here is my answer: Profit of S = 1,300,000 Intra finance expense = 400,000 Profit attributable to NCI = (1,300,000+400,000)*30% = 510,000 Is my answer correct?