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This topic has 1 reply, 2 voices, and was last updated 10 months ago by Stephen Widberg.

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April 7, 2022 at 4:25 am #652814
thanh123
Member
- Topics: 44
- Replies: 30
Hello tutor, I have a question part a of 1 Kutchen Co – Mock exam 2 – BPP Kit.
March Co, NCI is calculated based on P/E = 19 rather than 21. I think that it may be not correct as required by IFRS 13. The two companies which are comparable to Mach Co with P/E = 21, It is under level 2 input of IFRS 13.
Please explain to me the reason why using P/E = 19 to calculate NCI. Thanks tutor a lot !
April 7, 2022 at 10:14 am #652822
Stephen Widberg
Keymaster
- Topics: 12
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Scenario implies that the directors think there are some differences between the companies. So they are using 19. Judgement call.
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