Hello
So im studying consolidation. I have reached at non controlling interest. I am confused on how to calculate NCI for acquisition at start of the year vs mid year acquisitions.
From m y understanding, Fair value of NCI + NCI with retained earning post acquisition = NCI that goes into CSOFP and Goodwill? Is that for start of the year or mid year Goodwill? Can someone please simplify it for me? If we need two different formulas for start of year and mid year, please write the two different formulas clearly for me?
Thank you very much.
ACCA Forums
FAUtterly confused and stressed about Non controlling interest
Goodwill is always calculated with reference to control being established by parent entity over another entity. The fair value of net assets at point of control has to be established. After control has been established the nci must be given its share of post acquisition profits generated.
Goodwill is always calculated with reference to control being established by parent entity over another entity. The fair value of net assets at point of control has to be established. After control has been established the nci must be given its share of post acquisition profits generated.
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