• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

New! Lectures for ACCA AAA September 2022 Exams are now available >>

New! BPP Books for ACCA September 2022 Exams are now available, get your discount code >>

Non controlling interest.

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Non controlling interest.

  • This topic has 1 reply, 2 voices, and was last updated 9 months ago by P2-D2.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • September 7, 2021 at 10:23 am #634705
    akka17bakka
    • Topics: 73
    • Replies: 71
    • ☆☆

    Hello Tutor,

    I fail to understand why is non controlling interest shown in Parents SOFP? I mean that’s the part Parent doesn’t hold..

    Thank you.

    September 8, 2021 at 7:51 pm #634977
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 6115
    • ☆☆☆☆☆

    Hi,

    You need to recall that we have consolidated 100% of the assets and liabilities of the group, but the parent does not own all of them. The ownership of these assets and liabilities is shown in the equity section of the group SFP where we show what the parent owns and what the NCI own. If we did not show what the NCI own then the SFP would not balance as we would only have shown what the parent owns.

    For example, if we had net assets of 100 and P owns 80% then P would own 80 of these and the NCI the other 20, so equity of 100 (80 + 20). If we did not show the NCI then there would be net assets of 100 and equity of 80 and an imbalance.

    Hope that makes some sense.

    Thanks

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate

If you have benefited from OpenTuition please donate.

Specially for OpenTuition students

20% off BPP Books

Get BPP Discount Code

Latest comments

  • John Moffat on The management of receivables – Simple settlement discount – ACCA Financial Management (FM)
  • ty0311 on The management of receivables – Simple settlement discount – ACCA Financial Management (FM)
  • Manuga on ACCA AB Chapter 18 – The nature of communication – Questions
  • Manuga on MA Chapter 17 Questions Budgeting
  • Manuga on Budgeting part 4 – Cash Budgets – ACCA Management Accounting (MA)

Copyright © 2022 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in


We use cookies to show you relevant advertising, find out more: Privacy Policy · Cookie Policy