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Changes in group structure

1.4 Control to control step acquisitions (80% – 90%)

 Transfer between shareholders.

 Subsidiary before and after the acquisition.

 No change to goodwill.

Step acquisition is treated as if:

 Pay cash Dr NCI

 To decrease NCI
Cr Cash
 Difference to

equity Dr/Cr Equity

The movement in NCI is calculated as a PROPORTION of the NCI
balance at the step acquisition date.

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