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Appendix A Of AASB10 Non-Controlling Interest (NCI)

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According to the Appendix A of AASB10 non-controlling interest (NCI) is defined as: “Equity in a subsidiary not attributable, directly or indirectly, to a parent” (Ecompress.com.ezproxy.lib.uts.edu.au, 2016). A non-controlling interest is also known as a minority interest and is part of the equity of the consolidated group. For example, 80 percent of a subsidiary’s ownership (equity) interests are held by the subsidiary’s parent, and 20 percent of a subsidiary’s ownership interests are held by other owners; this ownership interest is known as a non-controlling interest. In the consolidated statement of financial position, the non-controlling interest is stated within the equity, the amount is evidently identified and categorized. Subsidiaries …show more content…

Non-controlling interests’ share in the net assets (equity) of subsidiaries at the dates the parent entity acquired the subsidiaries. This requires the non-controlling interests’ share of the pre-acquisition balances of contributed equity, retained earnings and reserves to be determined. 2. Non-controlling interests’ share in the changes in equity since acquisition date. This is achieved through calculating the non-controlling interests’ share of the post-acquisition movements in retained earnings and reserves. 3. Non-controlling interests’ share in the profit or loss of the subsidiaries in the current period. At the end of the reporting period the non-controlling interests’ share in profit for the year, distributions and transfers made, and movements in reserves for the year must be determined. As a result of recent amendments, AASB 3 provides preparers of financial statements with a choice in the measurement of the non-controlling interest. According to paragraph 19 of AASB 3, for each business combination the acquirer shall measure any non-controlling interest in the acquiree either at fair value (including goodwill), or at the non-controlling interests’ proportionate share of the acquiree’s identifiable net assets (excluding goodwill). AASB 3

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