Non
controlling interest at Reporting Date
NCI i.e. Non controlling
can be calculated by two method at acquisition date i.e. fair value method and
net asset method. For calculating the non controlling interest the profit is
attributed to the non controlling asset.
Non
controlling interest reporting date example
ABC acquire 60% share in XYZ Company. The net asset of
acquired is 300,000. Profit for the year is 15,000. Calculate the NCI at
reporting date?
Solution
First we calculate the percentage of minority interest i.e.
100%- 60% = 40%
|
Minority
Interest
|
40%
|
|
NCI
at acquisition date 40% of 300,000
|
120,000
|
|
Profit
for the year 40% @ 5000
|
2,000
|
|
NCI
at reporting date
|
122,000
|
|
|
|
