Created by Anele Bani
about 8 years ago
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Goodwill:
The way in which goodwill is shared depends on the whether NCI's are calculated using Fair values OR net identifiable assets.
If Goodwill is calculated using the NIA:
The whole amount goes to the Parent company only, NCI's do do not get a share.
Post acquisition:
The non-controlling shareholders' share of profits at acquisition net assets (equity) (as adjusted)- is credited to non-controlling interests. Do not forget INCREASES AS WELL.
=Adjustment of Equity x Non-Ctrl%
Dividends:
Dividends to NCI's (from the S)
must be debited to them, to reduce their interest in the group's net assets.
Inventories: Pro-formas
dr Sales
cr COS
unearned profits:
dr COS
cr Invetory