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Hello Sir,
In your lecture about the calculation of the NCI in consolidated profit .You have just taken the profit of the Tansey and made proportions for 3 months on 25% and for 9 months on 35%.
My concern is from FR study I knew that when doing the profit allocations between the partent and sub. first
Consolidating the two figures of Parent and Subs on 100% and time apportioned .
Then taking profit for the year and telling : Attributable to parentand then we use the balance of the profit for the NCI.
Not Just taken the figure of the SUB and multiplying by the NCI % ownership.AS the question is asking the consolidated statem,ent of the proifit and loss ,shouldn’t we use the consoldated profit?
Can you please clarify.
Thanks.
I have never seen NCI as a balancing figure, but if your working is clear and you get to the same answer, that’s OK. Remember that most of the marks are for explanations.
But if you are getting a different answer, then stick to our method. This is is what we would also use in FR.
PAT OF SUB x NUMBER OF MONTHS / 12 x NCI percentage
🙂
Yes,Thanks for correcting me .I checked the FR lectures for consolidating SPL and I have seen that for
Profit of the year (consolidated)
we say attributable to SUB= Sub’s profit *% of sub
and the balancing amount for the parent .So It is the otherway round as what I said in the begining .
Thanks a lot.
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