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The entity (parent) has 2 subsidiaries (subsidiary 1, subsidiary 2) and owns 100% in both of them.
Before transaction:
Total equity of subsidiary 1 - 300,000 USD;
Total equity of subsidiary 2 - 200,000 USD

Transaction 1:
In the reporting period subsidiary 1 has issued 100,000 (nominal value 1 USD per share) unused shares which was bought by other party with amount 150,000 USD.

Transaction 2:
At the same time subsidiary 2 has issued 50,000 shares (nominal value 1 USD per share) unused shares which was purchased by subsidiary 1 whit amount - 100,000 USD

Parent company prepares consolidated FS at the end of the reporting period.

What will by NCI in consolidated FS? And do i have to eliminate second transaction as it occurs   in the group? If yes hat will be the % of NCI in subsidiary 2?
in IFRS 10 - Consolidated Financial Statements by Level 1 Member (2.4k points)

1 Answer

0 votes
Ncl for 2nd subsidry is 95% .In second transaction  only group share are eliminated which is 75% of 100,000 USD
by Level 1 Member (1.3k points)