Group SFP- NCI

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November 28, 2024 at 3:38 pm #713589
aswini
Participant
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In the NCI lecture you told that the formula to measure NCI for fair value method was NCI% x S Shares in issue x S share value. But in Group SFP example basic calculation video for part B question NCI was calculated using NCI% x Post acquisition movement RE . please explain.
December 3, 2024 at 12:52 pm #713756
P2-D2
Keymaster
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Hi,
it is because at that stage we hadn’t introduced the FV method and were keeping things as simple as possible. Once we understood the fundamental principle of NCI then we began to look at the FV method to get a fairer valuation of the NCI and what it is worth.
Thanks
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