Company A acquires 70% of shares in Company B. Retained earning was 10000 at that date. When we calculate NCI at a later date, why we subtract full Pre-acquisition retained earnings? Why don’t we subtract only 70% of pre acquisition retained earning while considering only 70% shareholders has transferred their share to Company A.
I don’t know where you are quoting this from, but we do not subtract the full pre-acquisition retained earnings.
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