consolidated income statement

meibaker

i am bit confused on how to work out the equity holders of the parent?
in one case study, it uses parent's profit for the year + subsidiary profit for the year x % of owned.
in another case study, it uses the consolidated income statement profit for the year - non controlling interest?
how do i know which way to use??
another question:
A plc invested 305,000 pound in 800,000 ordinary shares of 10 pence each in the subsidiary ltd. the subsidiary ltd's issued share capital and reserves at the date of acqusition were 100,000 pound in shares and 200,000 pound in reserves, what's the value for goodwill arising on the acqusition?
how do i know what percentages of the shares A owns in subsidiary company?
many thanks

PGM

meibaker wrote: »

i am bit confused on how to work out the equity holders of the parent?
in one case study, it uses parent's profit for the year + subsidiary profit for the year x % of owned.
in another case study, it uses the consolidated income statement profit for the year - non controlling interest?
how do i know which way to use??

Use either, mathematically its the same equation.

another question:
A plc invested 305,000 pound in 800,000 ordinary shares of 10 pence each in the subsidiary ltd. the subsidiary ltd's issued share capital and reserves at the date of acqusition were 100,000 pound in shares and 200,000 pound in reserves, what's the value for goodwill arising on the acqusition?
how do i know what percentages of the shares A owns in subsidiary company?
many thanks

Theres 100,000 of share capital at 10p per share, so 1,000,000 shares.

80% of the company has therefore been bought.

cost 305,000
value 240,000 (80% of (100,000 + 200,000))

Goodwill is the difference 65,000

meibaker

PGM wrote: »

Use either, mathematically its the same equation.




Theres 100,000 of share capital at 10p per share, so 1,000,000 shares.

80% of the company has therefore been bought.

cost 305,000
value 240,000 (80% of (100,000 + 200,000))

Goodwill is the difference 65,000

thanks PGM for your answers!