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Complex groups
Example 1
Company A
70% Company A purchased the shares on
31 December 20X1
Company B
Company B purchased the shares on
60% 30 April 20X2.
Company C
Control
A controls B and B controls C. Therefore, A can indirectly control C.
Effective ownership percentage
B will be consolidated with A owning 70% and the NCI owning 30%.
C will be consolidated with A owning 42% (70% × 60%) and the NCI owning
58% (100% – 42%).
These % are used when calculating the NCI and group reserves.
Dates
B will be consolidated from 31 December 20X1.
However, B did not gain control of C until 30 April 20X2 meaning that A does
not indirectly control C until this date.
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