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Brigham has owned 70% of Dorset for many years. It also holds a $5 million 8% loan note from Dorset. One of Dorset’s non-current assets has suffered an impairment of $50,000 during the year. There is a balance in the revaluation surplus of Dorset of $30,000 in respect of this asset. The impairment loss has not yet been recorded. The entity financial statements of Dorset show a profit for the year of $1.3 million.
What is the amount attributable to the non-controlling interests in the consolidated statement of profit or loss?
In the solution, intragroup interest is reduced from profit of subsidiary.
-Profit for the year 1,300
-Intra-group interest (5m × 8%) (400)
-Impairment (50,000 – 30,000) (20)
-Total 880-NCI Share 880× 30% 264
Is it right? As per your explanation in last post, the individual figures are not affected and cancellation is just for consolidation purpose.
I am confused that which point I am missing here?
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