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Group structure changes

This topic has 3 replies, 2 voices, and was last updated 11 months ago by Stephen Widberg.

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July 11, 2021 at 6:51 pm #627474
azamali
- Topics: 14
- Replies: 33
Hello Good day,
I would like to ask if the following is treated the same way as the rest of the situations or is there a difference.

Parent co. lends money to Sub co. , after a while , the sub co. converts the loan to shares.
Does this have the same treatment, whereby we decrease the NCI.

How exactly would this be dealt with ?

Thank you
July 12, 2021 at 7:28 am #627490
Stephen Widberg
Moderator
- Topics: 10
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I assume this is for exam purposes – I’m not sure which exam question you have seen this in.

Can you please let me know which question it is.
July 12, 2021 at 4:35 pm #627545
azamali
- Topics: 14
- Replies: 33
It wasn’t specifically in a question. It came up while we were in a group discussion and someone mentioned it.

Any hints on this would be greatly appreciated.

Thank you
July 13, 2021 at 8:34 am #627580
Stephen Widberg
Moderator
- Topics: 10
- Replies: 2531
In group accounts

Parent now owns more shares in Sub

If there is a NCI it would proportionately get smaller

Usually, in life, there is no NCI, so it doesn’t matter
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