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Dear Tutor,
I have just worked through P2 past exam question & model answer for Glove.
It contains a vertical group – however, looking at model answer – im unsure why the Minority interest working shows a line called ‘indirect holding interest’
i.e.
MI for parent X
MI for Subsid ( 100% less effective %) X
Indirect holding adjustment ?? XPlease can you explain the purpose of this adjustment to MI,
Many Thanks & Kind Regardshi
can you check out the OT course notes? The indirect non-controlling interest ( no longer called minority interest ) needs to be taken into account when calculating goodwill, consolidated retained earnings, and the non-controlling interest.
I believe that the course notes illustrate the technique
If you still have a problem, post again
Cheers
werty
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