| Country : | Australia |
|---|
Assignment Task :
Module 1
Review questions
1. What is meant by the term ‘non-controlling interest’ (NCI)?
2. Explain whether the NCI is better classified as debt or equity.
3. Explain whether the NCI is entitled to a share of subsidiary equity or some other amount.
4. How does the existence of an NCI affect the business combination valuation entries?
5. How does the existence of an NCI affect the pre-acquisition entries?
6. Why is it necessary to change the format of the worksheet where a NCI exists in the group?
7. Explain how the adjustment for intragroup transactions affects the calculation of the NCI share of equity.
8. Explain whether an NCI adjustment needs to be made for all intragroup transactions.
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