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Why you have deducted the 84000 profit from 1,620,000 to calculate the nci share of increase in Sub net assets post acquisition ? 84000 is already included in the retained earnings of that year isn’t it ?
@raghavkhurana said:
Why you have deducted the 84000 profit from 1,620,000 to calculate the nci share of increase in Sub net assets post acquisition ? 84000 is already included in the retained earnings of that year isn’t it ?What Question – where this came from?
From your quote – there are pre & post acquisition profit. The examiner are only interested in profit made related to the period; therefore, take pre from post profit to arrive at the figure to be use to calculate NCI
The result MUST be shared as per percentage of allocation – 60:40 example
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