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Dear Mike
Can u please help me to reach the Nci Figure for the following question :
B acquired 60% of the share capital of J on 1 jan 2002 and 10% of G on 1 Jan 2003.
The cost of the combinations were $142000 and $43000 respectively. J acquired 70% of the share capital of G on 1 jan 2003.
Group policy to value the nci at its proportionate share of the fair value of the subsidiary identifiable net assets/Share capital
– B = $400000
– J = $100000
– G = $50000Can u please explain how we get
NCI IN J CO = ( 145 * 49%)
NCI IN G CO = (90 *48%)Ive understood the percentage amount of NCI but im unable to reach these figures.
I need the figures for retained earnings as at 1 January 2002 for J and 1 January 2003 for G
If the retained earnings figure for J was $45,000 as at 1 January 2002, then the nci value as at date of acquisition would be 40% (not 49% as you have typed) x $145,000
If retained earnings in G as at 1 January 2003 had been $40,000 then nci value at date of the acquisition of G would have been 48% x $90,000
Does that do it?
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