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Hello, everyone!
Can anyone make it clear for me why the NCI in question mentioned below is equal to 44% and so the Parent share is 56% only? (this is Q24 Minny Group of Becker Resivion Questions bank).In the question:
“On December 2015, P acquired 80% of the equity interests of S for a cash consideration of $320m. The fair value of a 20% holding of the non-controlling interest was $72m; a 30% holding was $108m and 44% holding was $161m:In the answer to this question they calculate goodwill as $320m + $161m – (30%*$320m) – net assets. And consequently later in RE and NCI calculations they use 56% share for the Parent and 44% share for the NCI.
Is this a mistake in the answer (mb caused by old version of that question) or I am just doing smth wrong?
Thank you in advance!
It’s not a mistake, it’s a complex D shaped group.
70%×80% = 56%
The 44% is therefore NCI.Hope it helps.
I’m trying to get through other questions but there’s just too much and not got a good feeling for exam.
Nearly giving up on this its so frustrating.
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