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I’ve been trying a few questions in the BPP revision kit. In some of the 15 mark questions, the percentage ownership of the subsidiary isn’t explicitly provided in the information given. I looked at the workings afterward and was still confused. I’ve had trouble finding out how you go about deducing that percentage from the information. Any ideas or tips?
I thought you could get it from dividing investment in the subsidiary by the share capital os subsidiary or dividing fair value of nci over share capital of subsidiary but failed to get the right percentages.
I just figured it out. It’s the nominal value of the shares bought by the parent divided by the share capital of the subsidiary. so, for example, Parent bought 3 million $1 shares and subsidiary’s total share capital is $4 million, then the percentage ownership is 3 million + 4 million = 75%
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