NCI at disposal

Hi, No you aren't missing something as there are different treatments for effectively the same thing. Technically the first method that you mention at the top is correct and the second one you mention is a shortcut that should get you the same answer. In the exam try to use the first method, and if the information isn't available in the question then use the second method. Thanks

Hi, could you please show me the correct answer for 2 methods: e.g. Acquisition at year start: FV of NCI at acquisition: 2 FV of NA at acquisition: 5 Goodwill: 7 Profit for the year of subsidiary: 10 Suppose NCI increase from 20 to 30% at year end Method 1: Carrying value of CGU at transfer: 7+ 5 + 10 = 22 Transfer to NCI: 22 * 10% = 2.2 NCI at year end: 2 + 10*20% + 2.2 = 6.2 Method 2: NCI prior to transfer: 2 + 10*20% = 4 Transfer to NCI: 4 * 10%/20% = 2 NCI at year end: 4 + 2 = 6 I expect same results under both methods, please help. Thanks.

Hi, I'd just focus on the one method and that is the first one as it is much more straightforward. Thanks