Page 435 - Microsoft Word - 00 CIMA F1 Prelims STUDENT 2018.docx

Answers

Example 15.5

This is a control to control disposal from a 90% to 65% shareholding

Journal entry to record control to control disposal

Dr Cash $400,000
Dr Equity – other components (bal fig) $125,000

Cr NCI (W1) $525,000
Working – Movement in NCI from disposal

$

Net assets at disposal date 1,400,000
Goodwill 700,000

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2,100,000

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Movement in NCI @ 25% 525,000

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