What we have learnt is that to reach at value of NCI at Balance sheet date we need FV of NCI at acquisition, ADD: NCI’s share in Sub’s post acq. reserves.
What I have seen in question 1 and 2 that, the answer has deducted the NCI’s share in Post acq. reserves of Subsidiary. All I want to know is why?
Because in question 3 the requirement is pretty much the same but the NCI’s share in Post acq. reserves of Subsidiary is added in the calculations.
We only add the post acquisition profit if they’re profits. If it is a loss then it would be deducted. In the questions you mention there is a reduction in the retained earnings, caused by a loss and so the amounts are deducted in the working.