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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 !
Scenario implies that the directors think there are some differences between the companies. So they are using 19. Judgement call.