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Chapter 14

Example 14.3

Below are extracts from the statement of financial positions of the members of
the P group:
P S SS

$000 $000 $000

Investments:
In B 1,125 – –
In C – 900 –

P owns 80% of S. S owns 75% of SS.

Required:

Calculate the indirect holding adjustment (IHA) required for the inclusion
within the consolidated SOFP.

Illustrate how the goodwill and NCI working will be affected as a result of
the IHA.

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