Exam 21: Consolidation: Non-Controlling Interest

A current year transfer by a partly owned subsidiary of a pre-acquisition balance from the general reserve to retained earnings is ignored when preparing the NCI journals as there has been no change in total equity.

According to AASB 10 Consolidated Financial Statements,a non-controlling interest is classified as:

The NCI is unaffected by the existence of any gain on bargain purchase.

Which of the following is not one of the 3 steps in calculating the NCI's share of the recorded equity of the subsidiary?

A non-controlling interest in the net assets of a subsidiary consists of the non-controlling interest's share at the date of the business combination:

Ownership interests in a subsidiary entity that do not belong to the parent entity are known as:

Fisher Limited acquired 75% of the share capital and reserves of Man Limited for $150 000.The equity of Man Limited consisted of share capital of $100 000 and reserves of $60 000.All assets and liabilities were recorded at fair value except plant and equipment which were recorded at $10 000 below fair value.The company tax rate was 30%.The partial goodwill method is adopted by the group.The amount of goodwill acquired by Fisher Limited in this business combination was:

Where a subsidiary is partly owned by a parent and an NCI,both the BCVR entries and the pre-acquisition entries are adjusted to reflect only the parent's share of the subsidiary's equity balances.

Which of the following statements is incorrect?

The NCI is entitled to a share of the consolidated equity of the group.