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Indirect Investment

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Indirect Investment

Viewing 2 posts - 1 through 2 (of 2 total)
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  • May 6, 2016 at 7:21 pm #313963
    Muslim Farooque
    Member
    • Topics: 190
    • Replies: 134
    • ☆☆☆

    Im quite confused regarding this adjustment and where to account for it,
    Considering a vertical structure in Kaplan textbook, I was doing an example, in that H was parent while S was subsidiary and T sub-subsidiary

    Now in goodwill and nci working for The sub-subsidiary that is T, indirect investment of NCI ( NCI % in subsidiary × Investment of Subsidiary in Sub-Subsidiary) was subtracted from both goodwill and Nci for T the subsidiary , is this true and valid as I have been taught by my tutor here something quite different , pls elaborate sir and is this indirect investment part of D group also?

    May 8, 2016 at 9:01 pm #314159
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7163
    • ☆☆☆☆☆

    Hi,

    What you’ve written doesn’t quite sound correct. In the goodwill we add in P’s share of S’s investment in H. In the NCI calculation we deduct the NCI share of S’s investment in H.

    Thanks

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