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Hi,
Q1 December 2010 Jocatt; could you kindly help me with the following please:
Jocatt purchased a subsidiary Tigret (60%). During the year Tigret made a 1 for 4 rights issue which raised $5m in cash. The NCI portion of this is $2m (5×40%) and ours is $3m (5×60%). Why do we take the NCI portion ($2m) in Jocatt’s cashflow statement under financing activities please? I would think that we would have to take the $3m.
Thanks!
Also, why don’t you add back the ‘Gains on property’ of $10.5m in the beginning please?
Thanks
The money raised from “outside” is the cash paid by the nci. Our 3m stays within the group, so moves from the one pocket / purse into another pocket / purse in the same trousers / hand-bag
The gainS on property – is that not the gain on sale of land (9) and the profit on investment property (1.5)?
Hi,
Thank you very much I understood! It makes sense now…
The gains on property was my fault actually I accounted for it twice…once in the beginning when I was adding back the non-cash figures, and once after the investment property working.
Thanks for your help.
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