I wished you gave a more detailed example using some numbers, and went ahead to calculate the goodwill and NCI for SS to help me understand better; at the end of the video, I'm still confused of how to work those two out
The logic behind is double counting issue of the consolidation journal entries for subsidiary and subsubsidiary based on effective ownership percentage. From these journal entries the Subsidiary NCI shares book value component, fair market value component of Subsubsidiary twice so we have to add additional entries to eliminate such double counting. Double counting issue also happens to dividends from subsubsidiary similar to investment in SS.
I wished you gave a more detailed example using some numbers, and went ahead to calculate the goodwill and NCI for SS to help me understand better; at the end of the video, I'm still confused of how to work those two out
Thank you
did anyone get the logic behind reducing NCI with %age of NCI in Cost of S's Investment in SS?
The logic behind is double counting issue of the consolidation journal entries for subsidiary and subsubsidiary based on effective ownership percentage. From these journal entries the Subsidiary NCI shares book value component, fair market value component of Subsubsidiary twice so we have to add additional entries to eliminate such double counting. Double counting issue also happens to dividends from subsubsidiary similar to investment in SS.
I cant find the notes for this lecture, can anyone help please?
You should look at study materials on our website: opentuition.com/acca/sbr/
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