NCI

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April 11, 2022 at 8:47 am #653061
thanh123
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Hello, I have a question: Activity 2: Foreign operation – BPP study text at chapter 15.

I am quite confused the way of calculation of NCI (SOFP) & NCI (SPLOCI).

First, NCI (SOFP).
The calculation includes the NCI share of post-acquisition Retained earnings, NCI share of exchange difference on net assets & GW, Impairment losses

BUT, NCI (SPLOCI): Profit for year.
The calculation only include the NCI share of impairment losses.

-> I think that it is inappropriate, why the NCI share of post-acquisition RE, NCI share of exchange difference don’t include NCI (SPLOCI): PFY

Furthermore, NCI (SPLOCI): Total comprehensive income.
The calculation only include NCI share of impairment losses & exchange difference (W9).

So, why the exchange difference includes in calculation of NCI (SPLOCI) TCI, if the exchange difference (W9) has replaced for all NCI share of exchange difference above

Sorry, the question is too long, I am so confused this matter. I hope to see your explanations. Thanks tutor !
April 11, 2022 at 9:46 am #653070
Stephen Widberg
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Not sure why you are worrying – the exam questions ask for goodwill and exchange differences.

I’m afraid I don’t understand your question.

NCI in profit – % s’s profits adjusted for impairment
NCI in TCI – % s’s TCI adjusted for impairment and exchange differences
April 11, 2022 at 11:26 am #653077
thanh123
- Topics: 40
- Replies: 27
I’m sorry as my question is too long

NCI (SOFP).
The calculation includes the NCI share of post-acquisition Retained earnings, NCI share of exchange difference on net assets & GW, Impairment losses

BUT, NCI (SPLOCI): Profit for year.
The calculation only include the NCI share of impairment losses.

-> Why the NCI (SPLOCI): PFY does NOT include share of post-acquisition RE, NCI share of exchange difference don’t include NCI (SPLOCI): PFY.
April 12, 2022 at 10:50 am #653141
Stephen Widberg
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P&L only shows profit for THIS YEAR less current year impairment
OCI only shows XD for THIS YEAR

So NCI will only show their share of the above.

Whereas NCI in SFP is considering CUMULATIVE post acq profits and CUMULATIVE XD
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