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Hello,
I was wondering if anyone can tell me the journal entries for the change in equity solutions.So the FV of the NCI at initial acqn date 46
increase in net assets 2.1
total net assets value at further acqn date 48.1
how I worked the answer out was
consideration (for 10%) 19
fv NCI (for 20% out of 30%) (48.1 x (2/3)) 32.07
Less NA (48.1)
negative movement in equity 2.97If anyone needs further information, please ask and Ill do my very best to provide.
Thank you for taking the time to view my post and help me with my answer.Hi
Why the unnecessary complication of 19 + 2/3 x 48.1 – nci value as calculated?
We agree that the nci at date of sale of the extra 10% was 46 (as at date of original acquisition) + 30% of increase in net assets (30% x 7)
So nci at date of 10% acquisition was 48.1 and Rose is buying 1/3 of that figure = 16.0333 for a purchase price of 19.
Thus we have a transfer between owners / adjustment to parent’s equity of 19 – 16.033 = 2.97
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