Hi,
I am just trying to recap what are the items I would need to deduct/add from a subsidiary profit for the year before I apply the % of non-controlling interest so to determine what is the profit attributable to NCI:
-unrealized profit for sales from subsidiaries to parent.
-unrealized profit for non-current assets sales from subsidiay to parent.
-Depreciation for assets held by the subsidiary valued at fair value for consolidation purposes.
-goodwill impairement.
- canceled financial income/expenses for infa-group loan notes.
something else?
thank you
Regards,
S.
Ask the Tutor ACCA FR
Profit attributable to NCI
To arrive at this year's subsidiary profit in order to find the basis from which to calculate the nci's share ......
I would not treat goodwill within that working ( though I can't justify that comment - it's just that I would charge the nci with their share of any goodwill impairment as a separate consideration)
The intra-group loan interest would not be adjusted in getting to the profit figure to be apportioned. The omission of that finance income / finance expense is a cosmetic adjustment to ensure that we don't include intra-group activity within the consolidation. But it doesn't affect the nci profit share
Other than those two points, you should be fine
Thank you Mike.
You're welcome
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