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sir why do we say that no profit or loss arises if additional shares have been acquired(from NCI)/disposed(by parent entity- which holds more than 50%) in the consolidated financial statements??
And if no profit or loss is calculated then WHAT DOES OTHER COMPONENTS OF EQUITY balancing figure shows? does not it shows the gain/loss on worth of NCI acquired v/s what was paid for it or vice-versa?
We say it is because IFRS 3 insists that we say it. I don’t like it any more than you. 🙂
Logic is that we should only recognise a profit or loss if there is a loss of control.
Your second statement is correct – but don’t start banging on about reserves in the exam!