Help with the Financial Statements Sample Assessment 1- Non-controlling interest
Comments
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Hello,
The way to calculate the Non-Controlling Interest (NCI) is like this:-
Work out the percentage NCI first
Take the Share Capital of the Subsidiary at reporting date, X the percentage attributable to the NCI
Add Share Premium of the Subsidiary at reporting date, X the percentage attributable to the NCI
Add Revaluation Reserve at reporting date, X the percentage attributable to the NCI
Add Retained Earnings at reporting date, X the percentage attributable to the NCI
Less Provision for Unrealised Profit (if there is any) (which is where there are goods sold inter-company but a percentage of goods have been sold to a third party)
I hope this helps1 -
Fantastic! Thank you very much AATClare0
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AATClare said:
Hello,
The way to calculate the Non-Controlling Interest (NCI) is like this:-
Work out the percentage NCI first
Take the Share Capital of the Subsidiary at reporting date, X the percentage attributable to the NCI
Add Share Premium of the Subsidiary at reporting date, X the percentage attributable to the NCI
Add Revaluation Reserve at reporting date, X the percentage attributable to the NCI
Add Retained Earnings at reporting date, X the percentage attributable to the NCI
Less Provision for Unrealised Profit (if there is any) (which is where there are goods sold inter-company but a percentage of goods have been sold to a third party)
I hope this helps0 -
Hi but I don't get the answer which is 435...0
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Thanks Sandy0
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Hi Sandysandy78 said:AATClare said:Hello,
The way to calculate the Non-Controlling Interest (NCI) is like this:-
Work out the percentage NCI first
Take the Share Capital of the Subsidiary at reporting date, X the percentage attributable to the NCI
Add Share Premium of the Subsidiary at reporting date, X the percentage attributable to the NCI
Add Revaluation Reserve at reporting date, X the percentage attributable to the NCI
Add Retained Earnings at reporting date, X the percentage attributable to the NCI
Less Provision for Unrealised Profit (if there is any) (which is where there are goods sold inter-company but a percentage of goods have been sold to a third party)
I hope this helps
This is because there is a revaluation of £200,000 which has to be accounted for too.
So:
We take 30% (NCI percentage) x 1000 for the Subsidiary's Share Capital at reporting date
30% x 250 Subsidiary's Retained Earnings at reporting date
and finally 30% x 200 Subsidiary's Revaluation Reserve working at reporting date
And so this comes to:
1000x30% = 300
250x30% = 75
200x30% = 60
added together, this equals 435.
I hope this helps0
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