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Dear Sir,
in the question we are given the information that, on 1 october 2015, Anita Co purchased 75,000 of Binita Co’s 100,000 equity shares when Binita Co’s RE amounted to 90k and we are given extracts from the statements of financial position of the two companies as follows:
Equity shares 125k Anita, 100k Binita
RE 300k Anita, 150k BinitaAnd we are asked to find the total equity. In the answer NCI has not been taken into account which I did not quite catch the reason why.
If you are asked to calculate the total equity then this will include the NCI balance too. There is enough information in the question to be able to calculate this figure, so I’m surprised to hear that it has not been taken into account. You can calculate it using the proportionate share of net assets method.
Thanks.
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