June 2014 Question 1 : Increase in NCI in Nathan

sorry in examiner answer its Carrying value of investment x (% increase/total interest), i get this point but in kaplan text this method is given for decrease in NCi and for increase in NCI ,i have already written above.

Hi - you have me at a disadvantage in that I don't have any Kaplan material to hand! The value of the nci, no matter at what date you are considering the issue is always going to be: Value as at date of acquisition + Share of post-acquisition retained earnings (and any other reserves increased since acquisition) - Their share of any goodwill impairment Does that formula not work in the question to which you refer?

Actually the requirment (i) of the question was to make a consolidated statement of profit and loss , and when i calculated the gain on disposal(increase in equity) i got 6.3m(using formula : % increase x fair value of net assets + total goodwill) , whereas in answer it was 5.3m(using formula : % increase x carrying value of invesment ) Requirement (ii) of the question was to explain how this increase in NCI is going to effect consolidated statement of financial position , as per examiner answer its effect in C.S.F.P will be 6.3 million , calculated exactly using same formula which i used for C.S.P.L so i am confused is it like , for C.S.P.L , we have to take carrying value of investment and for C.S.F.P , we have to take fair value of net assets plus goodwill ??????????

Surely there are two gains on disposal - one in the parent's own records and one for the group This is illustrated in the course notes in the question Diana and Liga (I seem to remember)