Exam 29: Consolidation: Non-Controlling Interest

A non-controlling interest is entitled to a share of which of the following items? I. Equity of the group entity at acquisition date. II. Equity of the subsidiary at acquisition date. III. Current period profit or loss of the subsidiary entity. IV. Changes in equity of the subsidiary since acquisition date and the beginning of the current financial period.

In Bell Group's consolidation worksheet, the opening balance of retained earnings under 'Group' column shows a balance of $70 000. If there is a debit entry of $16 000 in the NCI column, the opening balance of retained earnings under 'Parent' column would be:

Graham Limited acquired 90% of the share capital and reserves of Terry Limited for $340,000. Share capital was $200 000 and reserves amounted to $124 000. All assets and liabilities were recorded at fair value except equipment which was recorded at $60 000 below fair value. The company tax rate was 30%. The partial goodwill method is adopted by the group. The NCI share of equity at the date of acquisition was:

Under the partial goodwill method:

Patrick Limited paid $11 000 for 80% of the shares in Rachel Limited. At the date of acquisition Rachel Limited had equity as follows: Share capital $9 000 Retained earnings $2 500 Other reserves $4 000 All of Rachel Limited's assets and liabilities were recorded at fair value. The fair value of identifiable net assets acquired by Patrick Limited amounted to:

Which of the following statements with regards to control premium is incorrect?

When preparing a set of consolidated financial statements, the pre-acquisition entry relates to:

AASB 10 Consolidated Financial Statements classifies non-controlling interest as:

Under the full goodwill method, a control premium is recognised when:

Maddie Ltd holds 80% interest in Emily Ltd. Emily Ltd sells inventory to Maddie Ltd during the year for $15 000. The inventories originally cost $13 000 when purchased from an external party. At the end of the year all inventories are still on hand. The tax rate is 30%. The NCI adjustment to this intragroup transaction is a debit to NCI of:

Under the full goodwill method, the NCI is measured based on: