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Hi!
I am not able to find a method (that works all the time and is least prone to error) to allocate profit attributable parent and NCI while preparing a statement of profit and loss and other comprehensive income.
So can you please help me with this using any example or you can even refer me to any of your lectures which refers to this method, which will be equally helpful.
Thank You!In working W4b the Nci entitlement to their share of the subsidiary’s profits for the year, you need to learn this little mantra that says it all!
They want:
their share of
this year’s
subsidiary
adjusted
time-apportioned
profit after taxThere are no wasted words in there and it says exactly, precisely and consistently how to calculate the nci share of this year’s consolidated profit
Try it! You’ll probably get it wrong – a common error is to allocate to the nci their share, for example 30%, of the consolidated profit whereas they are entitled to their 30% of just the subsidiary’s profit after tax
Does that help?
Thank you Sir!
Those words are perfect for my problem(though first I have to memorize them) and you have correctly pointed my mistake too.
I don’t think I should have a problem after that.
thanks once again 🙂
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