Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
The additional 20% purchase by RBE results is enhancing in the controlling interest held in the subsidiary, DCA. No additional goodwill is calculated on the additional purchase as goodwill is only calculated at the date control was gained in accordance with IFRS 3. However, at the date of the further purchase (1 October 2010) the value of NCI needs to be established. The proportion "sold" will be transferred from NCI to parent's equity within the SOCIE. The difference between that value and the consideration transferred is included in parent's equity as an "adjustment to parent equity" on acquisition.
Statement of changes in equity for the year ended 31 December 2010 Attributable to equity holders of the parent
Non-controlling interest
Total
Equity
$000
Balance at the start of the year
3,350
650
4,000
TCI for the year (W1)
1,350
150
1,500
Share issue (2m x $1.30)
2,600
Dividends
(200)
(30) (W2)
(230)
Adjustment to NCI for additional purchase of DCA shares (W3)
(503)
Adjustment to parent's equity
(37) (W3)
-
(37)
Balance at the end of the year
7,063
267
7,833
Working 1
NCI share of total comprehensive income of DCA $600,000:
NCI at 30% x $600,000 x 9/12 months
135
NCI at 10% x $600,000 x 3/12 months
15
NCI share of TCI
Therefore parent share of TCI of DCA is $600,000 - $150,000 = $450,000.
Total TCI attributable to equity holders of parent is $900,000 +$450,000 = $1,350,000.
Working 2
NCI share of dividend paid April 2010 by DCA = 30% x $100,000 = $30,000.
Working 3
Value of NCI at 1 October 2010 is $650,000+$135,000(W1)-$30,000(W2) = $755,000
Therefore the value transferred is $755,000 x 2/3 = $503,333 Adjustment to parent's equity
Consideration transferred
540
Value of non-controlling interest transferred
Adjustment to parent equity
37
brigham problems
i have project on "cengagebrain" for framework class. its pretty long
Q. Discount rate to the estimated NPV of the investment? There is no necessity to round the solution up to the nearest whole percentage. NPV approximate may be made using the e
practical problems of chapter one of company accounts
what if 50% of customers who switch from pisa pizza who switch from original pizza to healthier pizza then switch to another brand from healthier pizza.
Subsidiary company exclusion features 1) The standard does not require consolidation of a subsidiary acquired when there is evidence that the control is intended to be temporar
Home Inc. is considering buying a new piece of equipment, which will cost $715,000 and has an economic life of 5 years, in order to make a new line of product. The company suppose
Here is the income statement for Belding, Inc. BELDING Inc. Income statement for the year ended December 31, 2012 Sales $400,000 costs of goods sold 250,000 gross profit 150,000 ex
An investment under consideration has a payback of seven years and a cost of $724,000. If the required return is 12 percent, what is the worst-case NPV? The best-case NPV? Explain.
I would like you to take the second set of data from session 8 (the one you worked with in the first participation exercise) and do the following: 1. Determine the number of gr
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd