NCI/PUp

Your post suggests that option iii) is correct yet I disagree with that. My answer to this question would be option A! Why is option ii) not correct? Because, when a subsidiary sells to the parent and there is a pup at the year end, the adjustment for the pup goes through the subsidiary's retained earnings for the year and that affects the nci. Ok?

Because choice ii) says that "it NEVER affects the nci" and that's incorrect. Choice iii) is incorrect Only choice i) is correct, so the answer must be A

You're welcome