Chpt 12 Changes In Group Structure

Question 1

Disposal where control retained e.g. 80% to 60%

Dr/Cr

Answer 1

Debit parents cash⬆️
Credit noncontrolling interest⬆️
Dr/Cr parents reserves (balancing figure)

Question 2

Increase shareholding of subsidiary

Dr/Cr

Answer 2

Dr NCI ⬇️
Cr cash ⬇️
Dr/Cr other components of equity

Question 3

80% to 60% no disposal noncontrolling interest

Calculation

Answer 3

NCI ⬆️ 20% = (net assets (Equity SoFP) + GW)

Question 4

No disposal, decrease holding

Dr/Cr

Answer 4

Dr cash received from sale⬆️
Cr NCI ⬆️
Cr/dr Parents equity