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Hi there
Today I was going through the BPP revision kit (Mock exam)
And in the last mock exam they have not combined the ordinary shares with the subsidiary for SOFP
I’m not sure why they haven’t combined the ordinary shares with subsidiary since there is an 80% ownership of the subsidiary companyThe subsidiary has 600000 and the parent invests 480000 shares
The parent already has $1500000 share capital by itselfAren’t we supposed to combine 480000 shares also with 150000???
In the consolidated SOFP we only show the shares of the parent company, because it is them who own most of the net assets of the group. The NCI’s share is shown separately in the consolidated SOFP.
Have you not watched my free lectures on this?
Yes I haven’t watched the lecture on this
I thought there wasn’t a necessity for me to watch it since I thought I knew consolidated statements well
But apparently I realized from this question that I’m still weak in this so I will watch the lectures for this alsoAlso yeah the reason I asked whether or not the ordinary shares are combined was because I saw a question in the kaplan where they have actually combined bothe the subsidiary and parent
That’s what confused me up when I found that in the BPP kit they have done no such thing when they show shares in SOFP
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