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Hi Again Mr. Mike Hope you are doing good
i had a question regarding Preference shares in Consolidation questions.What and where are the adjustments required if preference shares are invloved will it effect NCI
Regards
No, nci in equity is simply their long-term financing. If nci DO IN FACT own any of the preference shares in a subsid, their share will be shown as the value remaining after cancellation of the parent’s holding in the subsid prefs. the treatment is similar to where the parent has invested in a subsid loan note, but has not taken 100% of the loan note. You would cancel the parent’s holding against the relevant subsid long-term debt ( the loan note ) and the amount remaining after cancellation is shown as the remaining debt to outsiders. In the equity section for nci, it’s only their “equity” element which is shown – the amount remaining as a residual interest in the subsid’s activities
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