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Hi Mike
I am chrisron, could you please summarize the accounting treatments for consolidated financial statements, when a parent purchasing subsidiary in stages, such as associate, then subsidiary for both P&L and balance sheet.
Also when the parent disposed of shares, so that they moved from
subsidiary to trade investment. Please share the different workings needed.
In regards to the proper way of calculating the nci interest using the proportionate method. Is it to proportion the nci divided by the parent share or just multiply the nci percentage against the reserves?.
Please help, need clarification urgently.Thanks
Hi Chrisron. I’m puzzled! Surely the course notes explain the detail of the method to apply when there is a change in the group structure. Please check them and, if you still are not clear, please post again
Re proportionate method, apply the nci percentage to the fair valued net assets of the subsidiary as at date of acquisition.
There is an article from 2 years ago (?) in Student Accountant explaining this written (from memory, either by the examiner or by a member of the marking team – I’m pretty sure that it was the examiner)
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