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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
how do we calculate bonus issu4 and rights issue
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