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CHAPTER 14 – COMPLEX GROUP STRUCTURES

Example 14.1

(i) Effective shareholding = 80% × 75% = 60%

NCI = 40%

(ii) Effective shareholding = 60% × 70% = 42%

NCI = 58%

Example 14.2

Effective date of control is the later of:

 The date the parent bought the subsidiary

 The date the subsidiary bought the sub-subsidiary

(i) The date of effective control in SS is 31 October 20X2.

This was when the subsidiary bought the sub-subsidiary. Before this date
only S belongs to the P group. SS is only consolidated from 31 October
onwards.

(ii) The date of effective control in SS is 31 January 20X8.

This was when the parent bought the subsidiary. The subsidiary already
controls the sub-subsidiary.

S and SS are both consolidated from the same date – 31 January 20X8.

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