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in calculating NCI the post acq reserve upto disposal is calculated as
(210-156) *30 percentshouldn’t it be 210-160?
Do we consider OCE in W 2 (net assets of subsidiary) of consolidation?
I would have said
NA at disposal 210+6 = 216
NA at acquisition 150
Difference x 30% = 19.8You would take account of OCE in calculating Net Assets
But sir net asset at acquisition is 160
210 before any consolidated adjustment mean that it does not include 6 m$?
disposal is at year end
if we make a schedule of working 2
net assets at reporting 216
net assets at acquisition 160
difference 56*.3=16.8why you are considering 150? am i missing something…
why arent we considering the revaluation increase of 10 at the date of acquiistion shouldnt it be (150+10) at acuistion date
Hi sir continuing the above thread I need little more clarification..
from this 16.8 we need to deduct impairment loss which gives the value of 13.8. so 60+13.8=73.8 and its gives NCI of 24.6 which does not match with part a(i) of the question which is 25.6 if we do it as follows
net assets 216+40(goodwill)=256*.1= 25.6
please guide me what am I missing in calculation?
This question is no longer in the current BPP kit so I can’t help you any further.
Please remember that in any consolidation question calculations are capped at 2 marks and marks rewarded for approach rather than specifically agreeing with the answer. So don’t spend too much time on calculations like this.
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