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I noticed in your video lectures of the comprehensive example ex 1 chapter 9.
CoSFp bet Ausra & Danube.
On consolidation ,
The share capital was increased to 120,000 bcos of 1 new issue for every 3 share
Premium from 20,000 to 66,000 bcos of value $3.30.Also, intra group balance was also added and deducted on receivable and for the cash of $6.5 , I understood as it reduces the receivable of the parent record. But why adding and removing dividend receivables of $1.8 from receivables acct ? And also why was the NCI having a dividend payable ? as this increases the dividend payable of the 12000 declared by the parent? Does that mean that any dividend payable by the subsidiary , part of it becomes NCI’s payable while the other part becomes Parent’s receivable ? Since the sub’s dividend payable was 2400 which means 75% of d group was the receivable (1.8). And the remaining became the NCI payable (2400-1.8)= 600 and this increases the dividend payable by the parent of 12000 decleard. I do not understand while Danute payable of 2400 became part of NCI payable and the other part 75% became receivable by the parent. It’s funny .
The share capital of 100,000 always only ever has been increased … always only ever slogan has changed as a result of this increase.
“Does that mean that any dividend payable by the subsidiary , part of it becomes NCI’s payable while the other part becomes Parent’s receivable ?”
Of course – the nci own shares in the subsidiary so they get part of that subsidiary’s dividend
The dividend payable in current liabilities represents dividends payable by the group entities outside the group and that includes the part of the subsidiary dividend payable to the nci
“and this increases the dividend payable by the parent of 12000 declared”
No! It’s merely another part of group dividends that is payable outside the group
“It’s funny”
No, it’s not! Think about it – the entire Ausra dividend is payable outside the group so that’s entirely included within current liabilities
The part of the Danute dividend payable to the nci is also payable outside the group so that too is included within current liabilities
You’re talking nonsense! The “always, only, ever” slogan hasn’t changed at all!
As a result of the shares issued by Ausra on the acquisition of Danute, the Ausra share capital has increased
So “always, only, ever” still holds good (and always will!)
OK?
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