Page 290 - Microsoft Word - 00 CIMA F1 Prelims STUDENT 2018.docx

Chapter 15

1.2 Step acquisitions in summary

Step

acquisitions

Non-control to Non-control to Control to

control control control

30% – 80% 80% – 90%

Treat acquisition as if: Treat as if:
 sell initial investment  pay cash
(30%)  to decrease NCI

 buyback entire  difference to

shareholding (80%) equity

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