Dear Mike, In question Panda, when calculating NCI : (21000+2000)/2-2000=9500, i don't understand why it needs to be deducted by 2000, i think this is an intragroup interest needed to be canceled, why it had been recorded in the profit and loss account of Salva?
many thanks
jingdongyu
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December 2009 Question 1 Pandar
10y ago#1I thought I'd just answered this!
It's included in the Salva statement of profit or loss because it's an expense of Salva's
The ignoring / cancellation is done when we start adding across and we ignore the loan interest received in the parent's income and reduce the loan interest paid in the subsidiary's expenses
thank you for your patiently answering, may i understand in this way: ignoring the loan interest received in the parent's income should be treated like that (9500-2000) and reduce the loan interest paid in the subsidiary's expense should be treated as (3000-2000)/2, may i assume that when i calculate NCI, i think it should be like this: (21000+2000)/2=11500?
many thanks
jingdongyu
10y ago#3"may i assume that when i calculate NCI, i think it should be like this: (21000+2000)/2=11500" - surely that's the calculation for the pre-acquisition profits in working W2. How does it fit into NCI?
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