Example 2 consolidation P&L – chapter 24

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June 22, 2019 at 3:00 am #521038
geokcheng
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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
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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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