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cost of investment:
(share value / nominal value of shares) x fraction of giving shares x price of parent’s share x ownership %
treating revalutation:
add revaluation amount to net assets at acquisition
calculate depreciation, add to cost of sales
profit to date of acquisition
subsidiary profit for year plus (investment amount x % x period)
how to treat interco transactions
less investment income
less finance costs
how to treat URP
add to cost of sales
Fair value of NCI
NCI % x shares of subsidiary x share price of subsidiary
Fair value Goodwill calculation
cost of investment
add fair value of NCI
total
less net assets at acquisition
goodwill
profit split, final stage
attributable to:
group: total - NCI
non controlling interest: (post acquisition profit - depreciation) x NCI%