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Example 2 consolidation P&L – chapter 24

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Example 2 consolidation P&L – chapter 24

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  • June 22, 2019 at 3:00 am #521038
    geokcheng
    Member
    • Topics: 17
    • Replies: 12
    • ☆

    Hi Sir,

    Can you explain how to get 7.2 for NCI?

    my calculation is (112*6/12)*20% = 11.2

    June 24, 2019 at 9:29 pm #521242
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7065
    • ☆☆☆☆☆

    Hi,

    The goodwill is measured using the fair value method, so we need to deduct the impairment from the pro-rated profits to calculate the NCI’s share. So it would be as follows:

    [(112 x 6/12) – 20] x 20% = 7.2

    Thanks

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