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Dear Sir;
i am a bit confused when there is a step disposal where control is maintained.
How is the value of the new NCI calculated?
In the book (bpp) the calculation is done on the NCI
on openttuition notes the calculation is based on the Net assets
morover sometimes also in the notes the calculation is based on NA + Goodwill.i am lost…
Thanks!
calesThere is no consistency in the way that companies do this calculation.
My own feeling is that:
1. Proportionate goodwill – base on net assets
2. Full goodwill – based on a proportion of the previous NCI figure (as in BPP)For exam purposes credit will be given as long as you have explained that the adjustment is in SOCIE not P&L or OCI.
As always it is your explanations that count – if the figures differ slightly from the model answer, it doesn’t matter.
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