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Hi MR.Mike,
I had two questions on consolidation
Q1. What is the treatment required when there are potential voting rights.What and where adjustments will be required.
Q2. What is the treatment required for Negative NCI
Regards
Hi
Do we have control before these potential voting rights become actual? Yes! Then consolidate. When the voting rights cease to be potential, do we still have control? Yes? Then consolidate. No? Then treat as a disposal of a subsidiary
I’m not sure about negative NCI. I’ve seen an answer in Kaplan ( or BPP – I can’t remember which ) which shows negative NCI as a receivable.
I cannot get my head around the concepts which must underlie that treatment. If NCI was positive and, as a result of subsid’s losses, it’s now negative, I believe that you should write the NCI down to zero, but then no further.
I could be wrong!
THanks sir i understood the Potential Voting rights concept.I will try to get something on Negative NCi.
Regards
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