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Consolidated SPL

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Consolidated SPL

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by P2-D2.
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  • April 27, 2021 at 10:28 am #618954
    VanessaPlatt
    Member
    • Topics: 1
    • Replies: 0
    • ☆

    Why do impairment and fair value depreciation are added to operating expenses when consolidating then deducted from S’s profit on NCI’s calculation?
    Thank you!

    April 29, 2021 at 8:59 pm #619224
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 6473
    • ☆☆☆☆☆

    Hi,

    The impairment and depreciation are additional expenses and so will increase the operating expenses. An increase in expenses will reduce the profit, so if you are working out the NCI from S’s profit then you will need to deduct these amounts.

    Thanks

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