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Complex groups
Example 2
Company A
Company A bought its shares
60%
on 1 January 20X6.
Company B 30%
Company B bought its shares
30% on 1 July 20X4.
Company C
Control
A controls B. This makes B a subsidiary of A.
A is able to control 30% + 30% = 60% of the voting rights of C. C is a sub-
subsidiary of A.
Effective consolidation percentage
B will be consolidated with A owning 60% and the NCI owning 40%.
A’s effective interest in C is calculated as follows:
Indirect shareholding 18%
60% × 30%
Direct shareholding 30%
––––
Effective shareholding 48%
––––
The NCI shareholding in C is 52% (100% – 48%).
Dates
The date of acquisition for B and C is 1 January 20X6.
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