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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Step acquisitions – Control to control – ACCA (SBR) lectures Example 2
Hi,
In example 2, the balancing figure of $1.1m results in a reduction of other components of equity. I’m not sure acquiring more shareholdings in the subsidiary would result in a reduction of equity.
Thank you!
Best Regards,
John
Hi,
In the group accounts we are increasing our shareholding, hence decreasing the NCI. The difference between the amount paid and the decrease in NCI is taken to equity. It can be a decrease or increase dependent on the amounts paid and whether this is greater than or less than the decrease in NCI.
Thanks