Sbr (int/UK) Strategic Business Reporting

 

5 

The non-controlling interest at the date of the share purchase is calculated as 

follows: 

 $m 

NCI at acquisition 

60 

NCI share of post-acquisition reserves  

(20% × ($180m – $150m)) 

6.0 

Depreciation adjustment (part (i)) 

(0.3) 

 –––––– 

NCI prior to additional share purchase 

65.7 

 –––––– 

 

(1 mark for OFR calculation) 

The non-controlling interest will be reduced by $16.4 million (5/20 × $65.7m). 

Equity, normally ‘other components of equity’, will be increased by $1.4 million 

($16.4m – $15m).  

(1 mark) 

The correcting entry is: 

Dr Non-controlling interest $16.4m 

Cr Profit or loss $15m (to remove the incorrect entry) 

Cr Other components of equity $1.4m 

(1 mark)