Calculating the Non-Controlling Interest (NCI)in the Operating Profit and Opening

question 40

Multiple Choice

Calculating the non-controlling interest (NCI) in the operating profit and opening retained earnings of a subsidiary is done by:

• A) taking the operating profit and opening retained earnings figures of the subsidiary and multiplying them by the percentage ownership held by the NCI.
• B) adjusting the operating profit and opening retained earnings of the subsidiary for any intragroup transactions and multiplying them by the percentage ownership held by the NCI.
• C) adjusting the operating profit of the subsidiary for any unrealised profit or expense of the subsidiary as a result of any intragroup transactions and multiplying both this and the opening retained earnings by the percentage ownership held by the NCI.
• D) adjusting the opening retained earnings and the operating profit for any unrealised profit or expense of the subsidiary as a result of intragroup transactions and multiplying this by the percentage ownership held by the NCI.

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Definitions:

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