Exam 29: Consolidation: Non-Controlling Interest

Under the partial goodwill method:

A Ltd holds a 60% interest in B Ltd. On 30 June 2016 B Ltd transferred a depreciable non-current asset to A Ltd at a profit of $5 000. The remaining useful life of the asset at the date of transfer was 4 years and the tax rate is 30%. The impact of the above transaction on the NCI share of profit at 30 June 2016 is:

According to AASB 10 Consolidated Financial Statements, the term 'non-controlling interest' means:

A Ltd holds a 60% interest in B Ltd. A Ltd sells inventory to B Ltd during the year for $10 000. The inventories originally cost $7 000 when purchased from an external party. At the end of the year 50% of the inventories are still on hand. The tax rate is 30%. The NCI adjustment required in relation to this intragroup transaction is a debit to NCI of:

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

In Sunrise Group's consolidation worksheet, the opening balance of retained earnings under 'Group' column shows a balance of $90 000. If there is a debit entry of $22 000 in the NCI column, the opening balance of retained earnings under 'Parent' column would be:

Xana Limited paid $110 000 for 60% of the shares in Yama Limited. At the date of acquisition Yama Limited had share capital of $100 000 and retained earnings of $36 000 and all of Yama Limited's assets and liabilities were recorded at fair value, except for land that was recorded at an amount less than the fair value by $20 000. The company tax rate was 30%. The fair value of identifiable net assets acquired by Xana Limited amounted to:

Under the full goodwill method:

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

In respect to the intragroup services, any profit or loss is regarded as:

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