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Hi
I have one more question about sub – subsidiaries.
Am i correct in thinking that if Parent co. Has 62 percent in Sub 1 and Sub 1 has 60perc in Sub 2 the I should consolidate S1 and S2 even though group share in S2 is approx 36perc.?
However if S1 owned only 45perc in S 2 then Parent would not consolidate it. How would S2 be accounted for then?
Thank you
S2 would prepare its own group accounts for the S2 Group incorporating the results of S3
S1 doesn’t have a subsidiary, only has an associate, so there’s no consolidation to do for S1 – there’s no S1 group
Ok?
Look at the thread titled D shaped group, started by accountaholic and just 4 down from your thread. Look at my post at the end of that thread (4rth post on that thread)
Thank you
I hope sth like D shape won’t come up! 🙂But if subsidiary had an associate, genuine one, would sub share in its associate be included in NCI calculations? Because they would be part of Subs profits ?
Thank you
I don’t think I’ve ever seen that situation! We will bring into the consolidation the GROUP’S share of the associate so, if we’re only bringing in the group’s share, then we can’t allocate any of the associate’s results to the nci
If say H owns 70% of S, and S owns 30% of A, we would bring into the consolidation only 70% of 30% = 21% of A
Ok?
Question.
When computing goodwill of the sub subsidiary the purchase consideration is supposed to be a percentage of what??
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