Help with non controlling interest-AAT Level 4

Hi All ,

Can anyone help with calculating the non controlling interest at acquisition ?
I have been doing the sample assesments on AAT website and both the exams i am struggling to get my head around it .
losing the will to live :-(

Comments

  • hal978hal978 LondonRegistered Posts: 122
    The non-controlling interest on acquisition is simply the equity on acquistion times the non-controlling interest percentage.
  • emma8021emma8021 Registered Posts: 14
    Thank you I did have a light bulb moment yesterday and worked everything out, think I'm just stressing to much and need to relax and focus as once I did that I managed to do the while consolidated accounts correctly.
  • Simon_PhillipsSimon_Phillips Registered Posts: 7
    can anyone help with Q6 on sample assesment 2?

    for retained earnings It says non controlling interest is 49, but I make 30% of 130, 39

    what am i doing wrong?
  • dumutrobadumutroba AAT Student, AATQB Posts: 116
    edited October 10
    Multiple by the percentage owned by the parent, not the minority. This is likely to be 70% not 30%

    Also don't forget to account for any unrealised profit and post acquisition profit
  • Simon_PhillipsSimon_Phillips Registered Posts: 7
    Going to have to look with fresh eyes tomorrow. I tried everything i could think of and couldnt get the 49
  • dumutrobadumutroba AAT Student, AATQB Posts: 116
    Hi Simon
    The retained earnings of the subsidiary are 130 at the consolidated date less the retained earnings at acquisition date
    130-60=70*70%=49
  • Simon_PhillipsSimon_Phillips Registered Posts: 7
    dumutroba said:

    Hi Simon

    The retained earnings of the subsidiary are 130 at the consolidated date less the retained earnings at acquisition date

    130-60=70*70%=49

    cheers. new it would be something straightforward that I missed, not subtracting the previous years retained earnings. doh

    Thanks again

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