Hi Mike,
If we have 80% of subsidiary and we sell 20% to get to 60%, do we still need to include goodwill in the working for “adjustment to parent’s equity”? I see that in bpp’s example on disposal they only show this if;
a) we sell all of subsidiary
b) we cross the 50% ownership barrier down from 50 %
In their example of going from 80% to 60% they do the following;
F.V of consideration received = X
less: increase in NCI in net assets at disposal (20%x (shares+ret earns)
Are there two different methods for reaching the same answer ? What is the difference between these methods?
Thank you in anticipation.