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Dear Tutor
If the parent made additional acquisition in subsidiary by subscribe in new shares issued by subsidiary and increased the percentage of ownership for example from 51%to 53%
What the transaction should made? Should the parent record profit or loos between consideration and percentage of new assets that acquired?
Please help what the transaction onHi,
We are just increasing our ownership stake in the subsidiary, so consolidate as normal but we need to make an adjustment between the owners of the parent and NCI.
Have you looked at the chapter on changes in ownership? If not then I recommend that you do and try to apply the percentages above to some of the examples and see how you get on.
If you are still struggling then please let me know.
Thanks
Thanks for help,
I have read examples but all situations that the parent purchased directly from NCI but in my case the subsidiary issued new shares and the parent purchased shares more than the NCI purchased means the ownership for parent increased
The entry in parent will be Dr investment in sub. Cr bank then what the adjustment in consolidation and please note the NCI as amount will increase cuz the number of shares of equity subsidiary increased however the percentage of NCI decreased
Plz help
Thanks
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