Non controlling interest - HELP!?

Please could someone explain how the non-controlling interest at acquisition is 4,000?
And all the following figures after? I cannot seem to link them back to the original statements.
Any help with this would be much appreciated.


  • CMP1969
    CMP1969 Registered Posts: 1
    Hi milly1998

    The best way to look at this is to 1st think about what Share Capital, Share Premium and Retained Earnings B Ltd had on day it was acquired by A Ltd.

    1. Date of Acquisition is 01/01/20x4 and A Ltd Acquired 80% holding i.e. 8,000/10,000 share = 80%.
    2. If A Ltd's share in B Ltd is 80% therefore Non-Controlling Interest is 20% (100%-80%)
    3. At Acquisition B Ltd had following Equity;
    Share Capital - 10,000 of which 20% is NCI = 10,000 x 20% is £2,00
    Retained Earnings - 10,000 of which 20% is NCI = 10,000 x 20% is £2,00
    Total is therefore £2,000+£2,000 = £4,000 (Note this is only Non-Controlling Interest at Acquisition)

    Hope this helps
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