ACCA FA · Chapter 13 · Question 3 of 12
P acquired 80% of S. Non-controlling interest was measured at $150,000 at the acquisition date. Since acquisition, S has made post-acquisition profits of $90,000. There has been no impairment of goodwill. What is the non-controlling interest in the consolidated statement of financial position?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) $168,000
Explanation
NCI = NCI at acquisition + NCI share of post-acquisition profits = $150,000 + (20% x $90,000) = $150,000 + $18,000 = $168,000. Using 80% of post-acquisition profits gives $222,000, and adding all of them gives $240,000.
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