Page 480 - SBR Integrated Workbook STUDENT S18-J19

Chapter 25

Example 3 – continued

(W4) Profit on disposal in consolidated financial statements
$m $m

Proceeds 79
Fair value of shares retained –

Less carrying amount of subsidiary:
Goodwill at disposal 6

Net assets at disposal 83
$1 + $37 + ($60 × 9/12)

NCI at disposal (14)
––––

(75)
––––

Profit on disposal 4
––––

(W5) Profit attributable to the NCI

$m
Waltzer loss for the year (10)

NCI share of loss: $10m × 10% (1)

Cakewalk profit for the year ($60 × 9/12) 45
NCI share of profit: $45m × 30% 13.5

The total NCI profit share is therefore $12.5 million ($13.5 – $1).

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