Topic09_SeminarQuestions

Topic09_SeminarQuestions - Week 5 20 Jan (DM) Lecture Topic...

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Week 5 20 Jan (DM) Lecture Topic 9 Consolidation: Non-controlling interest Describe the nature of non-controlling interest and the allocation issue in consolidation accounting Prepare consolidation journal entries for the non- controlling interest o Pre-acquisition capital and reserves o Post-acquisition reserves o Current net profit o Unrealised profits and excess depreciation Prepare comprehensive consolidation worksheet Seminar Questions: Picker et al, Ch.25 DQ12 Exercise 25.2 (Parts 1 & 2) Chapter 25: Consolidation: Non-controlling interest DISCUSSION QUESTIONS 12. If a step approach is used in the calculation of the NCI share of equity, what are the steps involved? Step 1: share of subsidiary equity at acquisition date; Step 2: share of change in subsidiary equity from acquisition date to beginning of the current period, and Step 3: share of change in equity in the current period. Step 1 Step 2 Step 3 Date of acquisition of subsidiary Beginning of the current reporting period End of the current reporting period (the reporting date) 1. NCI share of the pre- acquisition equity: ¾ share capital
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Topic09_SeminarQuestions - Week 5 20 Jan (DM) Lecture Topic...

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