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If on the begining of the yr 1 june 2010 A company acquired 70% of interest and at the end of yr on 30 may 2011 acquired futher interest of 10% .
NCI is adjusted by transfering the 10% but the calculation of Retained earning still stand at 70% .i dont understand y.because income is assumed to be earned evenly throughout the year and it wouldn’t be fair to grant the company extra 20% of whole income if this 10% were acquired only at the year end, would be?
Retained earning will be increased in the Statement of equity change by calculating increased control.
Adjustment should be=10%(NA at date of increased)-cash paid adjustment to retained earning and NCI in the equity change Statemant.
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