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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › The non controlling interest in the goodwill of the subsidiary
Example 6: Page 40, Why do we own 8000 shares of Ilona? We own 25% @ 32,000 $ = 8000 $ of share capital….Am I wrong??
Have you checked the nominal amount of the share?
dtsolak – what a strange question! The heading for the stream says “non controlling interest in the goodwill …” so, when you say “we” I presume you’re talking from a non controlling interest point of view.
And now, from their point of view, you say “Why do we own 8,000 shares in Ilona? We own 25% @ 32,000 $ = 8,000 $ of share capital”
Errrr, yes. And that’s why we own 8,000 shares in Ilona! It’s because we own 25% of Ilonas’ share capital which is the same as 25% @ $32,000 shares = 8,000 shares
dtsolak – what a strange question! The heading for the stream says “non controlling interest in the goodwill …” so, when you say “we” I presume you’re talking from a non controlling interest point of view.
And now, from their point of view, you say “Why do we own 8,000 shares in Ilona? We own 25% @ 32,000 $ = 8,000 $ of share capital”
Errrr, yes. And that’s why we own 8,000 shares in Ilona! It’s because we own 25% of Ilonas’ share capital which is the same as 25% @ $32,000 shares = 8,000 shares
