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Sir,
When the parent(holding) acquire % from the subsidiary capital shares, How that ratio calculated ? from which of the following ? :
1) only its portion of the subsidiary shares market price .
2) or only its portion of the subsidiary shares par value .
3) or from the subsidiary net assets including the subsidiary reserves and retained earnings plus its capital .
ThanksOk, The Par value is used, when we calculate the investment account, But for the Goodwill and Non Control Interest calculation, will be according tho the net assets , or according to the shares purchased ratio ?
For example :
– the goodwill = the amount paid – (minus) ? (which of the three choices)
– NCI = their ratio % × ? (which of the three choices)
ThanksThis is covered fully in the video lectures.
There’s no way that I’m writing out the lecture – you’ll have to watch it for yourself and then come back to me if you are still stuck
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