Hi
PS acquired 35 percent of GG a number of years ago. On 1st June acquired Aden 30 per cent , which of following is false?
1. Ps will only apply equit accounting for GG at year end, I answered
This as being false which was correct
2. Nci column in stmt OCI within ps group shows increase as result off add aquisition. I don't agree surely nci reduces?
The answers says nci increase and the amount of increase would depend
On whether fav it prop asset valuation was used
CIMA Forums
Nci
Hi
Could you please get back to me asap
Thaunks
9y ago#2Hi,
I'l get back to you when I have the first opportunity thanks.
We equity account if we have an associate and given we have 35% of GG that is likely to give significant influence and so an associate that we will equity account for.
I don't think you've given me enough information about the second question to be able to answer it.
Thanks
Thanks. 2 Nnd part says nci increases but surely as we purchase
More then nci reduces as we have more control.
The question said nci increases and the increase would depend on whether fair value or prop of net assets was used
9y ago#4Hi,
What was the % holding before PS acquired the extra shares in Aden? It could be that it was less than 50% and so we didn't have control until the extra shares were bought. On acquiring the extra shares that gave us control then the NCI would increase as there was no NCI previously, given we held less than 50%.
Thanks
Hi sir
I will check, however passed the objective test now so moving on to p2.
Thanks for your help , much appreciated
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Thanks
Hi sir
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9y ago#8Thanks!
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