Comment As long as NCI is measured at proportionate share of subsidiary’s
net assets, the proportionate approach should be used in the computation of goodwill.
JAY:
How is non-controlling interest at the date of the SFP calculated? KO:
STEP 7: COMPUTATION OF NCI In computing NCI (in
this case, use the partial or proportionate approach. The Partial method we take the totals of the balance sheet column in Step 5 and find NCI share and add NCI’s goodwill
GH¢
NCI share of balance sheet column in Step 5: 24,900@20%
4,980
NOTE: NCI will not suffer any impairment since no goodwill was attributed to it. JAY:
How is Consolidated Reserve at the date of the SFP calculated KO:
STEP 8 COMPUTATION OF CONSOLIDATED RESERVES. Refer to Part One for details. Extract (a We will combine Steps 5 and 6 in the computation of Consolidate
Reserves Item Workings GH¢
OPTION 1 Income surplus of Victory Ltd
417,830 Group share of post of Happy in Step 5 80%*900 720 Group share of post of Comfort in Step 5 25%*5,600 1,400 Goodwill impaired Step 6
(1,500)
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