Hi there.
This is my first post ever. In fact I´m from Brazil a country that is moving forward to reach IFRS conversion (full conversion will be at dec/2010).
My question is: how to calculate or how to input into a financial statement a business combination that is calculated by "proportionate share of the aquiree´s identifiable net assets" when this acquired is a non-controlling interest?
ex. Company A has acquired 80% interest (NCI) of company B. At that moment (FY 09) company B has on its FS:
- share capital of $ 20.000 - total retained earnings of $ 30.000.
On the next FY (FY 10) company B has on its FS:
- share capital $ 20.000 - retained earnings $ 40.000 - other reserves $ 6.000.
In the end of FY 10 what would be the amount recognized on the company A.
Kind regards.
Augusto.
CAclubindia
