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Hi
I wanted to ask what is the best way to calculate NCI at disposal in equity shuffle calculation. I noticed that sometimes solutions use Net Assets plus goodwill but sometimes they take FV NCI at acquisition plus goodwill plus NCI share of post acq. Profits.
The result I am getting using two methods for the same question differ so I must be doing sth wrong?
Thank you
“Value at date of acquisition + share of post-acquisition profits – share of goodwill impairment” should be the same as “share of fair valued assets at date of disposal + any goodwill still not impaired”
Are you sure that your answers are different?
Yes. I just tried again and I must be doing sth wrong. Anyway if I have FV of NCI at acq. Then it seems starting from this gives me correct result.
I was wondering if I had to use proportioned method of goodwill. I would need to take figure of NCI share of net asssets at disposal but should I then add on goodwill?
Thank you
If they’re proportional, they’re proportional. You can’t account for the nci share of goodwill on disposal where they don’t have any goodwill
Re the assets, yes, it’s always the fair value of the net assets that we are looking at for the nci valuation
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