Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › calculating NCI at fair value
- This topic has 5 replies, 3 voices, and was last updated 12 years ago by MikeLittle.
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- September 23, 2012 at 1:38 pm #46517
when we are calculating the nci at fv when the nci fv at acquisition or the share price in order to calculate it is provided in the question, will calculate it as follows:
fv of nci at acquisition+nci share of post acquisition profits-nci share of impairment loss in goodwill.
my question is do i add the nci share of goodwill ?your quick response will be highly appreciated.
September 23, 2012 at 2:39 pm #72361No, the goodwill element of the calculation is to DEDUCT THE NCI’S SHARE OF ANY GOODWILL IMPAIRMENT SINCE ACQUISITION
So, in direct answer to your question “No, you do not add the nci share of goodwill”
September 25, 2012 at 3:05 am #72362Hello Mike,
Please can you post the words of the song which can help to do the consolidated retain earnings calculations. thanks
September 25, 2012 at 5:32 am #72363“H’s own plus
H’s share of S post acq retained less
Goodwill impaired since acquisition ( just our share )”It extends when there is an Associate involved and becomes:
“H’s own plus
H’s share of S post acq retained plus
H’s share of A post acq retained less
Goodwill in S imppaired since acquisition ( just our share ) less
Any impairment in the Investment in A since acquisition”That last line is of course the whole of the impairment because the only element of the Investment in A is ours. There is no reflection in that investment of the majority’s holding
Sing it loud and often!
September 27, 2012 at 6:11 am #72364thank you very much Mike. I really appreciate the work you are doing. May you get all your heart desires.
September 27, 2012 at 10:40 am #72365Why, thank you! 🙂
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