On 30 June 20X2, H acquired 80% of the share capital of S. The non-controlling interest had a fair value of $1,500,000
Extracts from the statement of financial position of S at 30 June 20X2 and 30 June 20X6 are shown below:
Statement of financial position
| 30 June 20X2 | 30 June 20X6 | |
| Ordinary share capital | 4,000,000 | 4,000,000 |
| Share premium account | 2,000,000 | 2,000,000 |
| Retained Earnings | 1,000,000 | 1,800,000 |
What figure for non controlling interest should appear in the consolidated statement of financial position as at 30 June 20X6?
Suggested solutions:
| Non-Controlling Interest | 1,500,000 |
| Share of profit | 160,000 |
| Answer | 1,660,000 |
Share of profit after acquistion
= 0.2 X ( 1,800,000 -1,000,000 )
=$160,000
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2015 ACCA F3 NON CONTROLLING INTEREST