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Between 4:42 and 4:47 on the video you make the following statement – “… so your giving back to the NCI some of their NCI …”. Do you mean one is ‘taking from’ the NCI? Or have I misunderstood something basic?
Hi,
Correct, so when we are acquiring more shares in a subsidiary then there is a reduction in the NCI, hence we are in effect giving back the NCI some of what they currently own.
Thanks
Still confused. How can we acquire and at the same time give back? Excuse me if my brain is not registering!!
Hi,
If we acquire more shares in the subsidiary then our ownership increases and therefore the NCI decreases. The amount by which it will decrease is based upon what they previously owned and so we calculate the amount by which it falls based on what they previously owned.
Thanks
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