Help with non controlling interest-AAT Level 4

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emma8021
emma8021 Registered Posts: 39 Regular contributor ⭐
in Financial Statements for Limited Companies
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 :-(

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  • hal978
    hal978 Registered Posts: 197 Dedicated contributor 🦉
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    The non-controlling interest on acquisition is simply the equity on acquistion times the non-controlling interest percentage.
  • emma8021
    emma8021 Registered Posts: 39 Regular contributor ⭐
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    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_Phillips
    Simon_Phillips Registered Posts: 8
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    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?
  • dumutroba
    dumutroba Registered Posts: 262
    edited October 2018
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    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
    AAT Level 2. 2018 Distinction
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  • Simon_Phillips
    Simon_Phillips Registered Posts: 8
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    Going to have to look with fresh eyes tomorrow. I tried everything i could think of and couldnt get the 49
  • dumutroba
    dumutroba Registered Posts: 262
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    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
    AAT Level 2. 2018 Distinction
    AAT Level 3. 2018 Distinction
    AAT Level 4. 2019 FSLC 100% MABU 93% MADC 82% PDSY 80%
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  • Simon_Phillips
    Simon_Phillips Registered Posts: 8
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    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

  • LucySherwood
    LucySherwood Registered Posts: 12
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    hal978 said:

    The non-controlling interest on acquisition is simply the equity on acquistion times the non-controlling interest percentage.

    Although really simple this has been tripping me up due to over complicating it. thank you for putting it in such simple terms NCI calculation for goodwill was the last piece of the puzzle for me to consolidate the accounts

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