Hello, Hope you’re doing well.
I have my F2 OT in three days and I am still struggling with the control to control transfers. For e.g. if there is an increase in NCI from 20 to 25%, then we calculate the change in NCI by calculating NCI @acq + NCI% of post acq – any impairment (if applicable)= total NCI
this number is then multiplied with 5%/20%x the total NCI.
I notice some examples have only the change say 5% multiplied by NCI. And some exmaples have NCI= total assets at disposal plus goodwill x NCI%.
Is there a consistent formula or am I missing something?
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.
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