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NCI in changes in group composition

Rrameez1303198811y ago
the Q2 in which sub incred to sub and Q4 from sub higher holding to sub lower holding ie transferr between owners has one issue the NCI is Dr with 500,000 and in Q4 CR with 300,000(in SOCEITY) ie proceeds payed and received why? I think only the share of NA should have been adjusted...
MikeLittleMikeLittleTutor11y ago#1
Why would we sell some shares and not receive 300,000 for them? How could we acquire shares and not pay 500,000 for them? Does that answer it?
Rrameez1303198811y ago#2
I know that when we acquire we have to pay 500,000... but how does this decreases NCI? The decrease wich i can understand is of NA transfered to group wich i think u have included in the 500,000 consideration but why also amount over the NA is deducted from NCI?
MikeLittleMikeLittleTutor11y ago#3
Because we have paid them off! If you accept that the value of the nci is the amount that the group owes to them, then a payment of $500,000 surely reduces that "debt" Ok?
Rrameez1303198811y ago#4
OK understood... now on the other hand when we transfer our NA share to nci in transfer between owners we the group receives cash then why is that CR to NCI?
MikeLittleMikeLittleTutor11y ago#5
Because we owe them more so we need to increase that obligation Imagine the company goes into a solvent liquidation. After all payables have been settled in full, then the surplus is distributed amongst the shareholders and the nci will be entitled to their increased share of those surplus assets Ok?
Rrameez1303198811y ago#6
yes... love u ... may ALLAH (GOD) guide you to the truth of Islam
MikeLittleMikeLittleTutor11y ago#7
You're welcome and thanks for those good wishes!
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