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intra loan

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › intra loan

  • This topic has 0 replies, 1 voice, and was last updated 8 hours ago by Niranjnn.
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  • August 14, 2025 at 1:53 pm #718750
    Niranjnn
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    sir; i have a question. Brigham Co has owned 70% of Dorset Co for many years. It also holds a $5 million 8% loan note from Dorset Co. The financial statements of Dorset Co show a profit for the year ended 31 December 20X6 of $1.3 million.

    Brigham Co acquired 80% of the equity shares in York Co on 1 July 20X6. The financial statements of York Co show a profit for the year ended 31 December 20X6 of $2.4 million.

    The profits of all group companies accrue evenly across the year.

    What is the amount attributable to the non-controlling interests in the consolidated statement of profit or loss?

    here the answer is given as 510 , by nci in dorset 270 and nci in york 240. while calculating nci in dorset, they deducted the intra loan interest from dorset`s profit. but i think it is wrong because here bringam have given loan to dorset so dorset incures the interest expense means its profit needs to be increased rather than reducing.
    clear me if iam wrong. thanks.

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