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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Non controlling Interest
Hi Good afternoon.
How do you know when to include and exclude NCI in purchase consideration.
Verona
Include it if the information is available – and it most probably will be available.
In the (unlikely) event that the examiner tells you that the nci is valued on a proportional basis, then the goodwill calculated relates entirely to the parent. But you will still need the nci value when calculating W4A, the nci on the Statement of Financial Position.
There are one or two examples in the OpenTuition notes where we have to assume that nci is proportional – but these are questions where the point of the exercise is to demonstrate some further issue – for example, the calculation of the pup on a TNCA transfer.
But in the real exam it is highly unlikely that the examiner will not give you the basis for the calculation of the nci