Page 225 - Microsoft Word - 00 P1 IW Prelims.docx

Group accounting – Basic groups

(W4) Non-controlling interest (NCI)

$m
NCI at acquisition (as per W3) X
NCI % x S’s post acquisition reserves (W2) X
NCI % goodwill impairment (FV method only) (W3) (X)
––––
NCI at reporting date X
––––

(W5) Consolidated reserves

Retained Other
earnings components
$m $m
100% P's reserves X X
P's % of post-acquisition reserves (W2) X X
Goodwill impairment** (W3) (X) –
Gain on bargain purchase (W3) X –
PURP adjustment (if P was seller) (X) –
–––– ––––
Reserves at reporting date X X
–––– ––––

** Be careful when dealing with a goodwill impairment in retained earnings:

 deduct P% if the NCI was valued at fair value

 deduct in full if the NCI was valued proportionately.

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