Quick question on non controlling interest - 【CFA学习难点答疑解惑】 - CFA论坛

返回列表发帖

Analti_Calte

CFA Candidates

Rank: 2

UID: 222289
帖子: 395
主题: 7
注册时间: 2011-7-2
最后登录: 2016-8-30

11^# 跳转到 »

发表于 2013-4-22 06:56 | 只看该作者

what?
anyways, go to p.79 of schweser. don’t make it harder than it is.

TOP

brazilatz

CFA New Member

Rank: 1

UID: 442402
帖子: 82
主题: 6
注册时间: 2012-6-5
最后登录: 2016-4-21

12^#

发表于 2013-4-22 06:56 | 只看该作者

Wow, a lot of confusion 2 days before exam. Do we have a consensus? I cannot find a concrete example in the readings.

TOP

LorrinCFA

CFA Candidates

Rank: 2

UID: 223382
帖子: 296
主题: 72
注册时间: 2011-7-11
最后登录: 2014-8-4

13^#

发表于 2013-4-22 06:57 | 只看该作者

Oh my gosh I’m so sorry I was thinking about the income statement. I really should’ve been more thoughtful. You subtract out minority interest earnings on the income statement but the minority interest account on the b/s is the portion of the company’s equity you do not own.

TOP

JonnyKay

游客

UID: 223332
帖子: 360
主题: 31
注册时间: 2011-7-11
最后登录: 2013-9-23

14^#

发表于 2013-4-22 06:57 | 只看该作者

I was going to add that but did not want to complicate things. Assuming purchase includes issuing shares:
Consolidated Equity = Parent E + Minority Interest +New Shares Issued

TOP

AnalystForum

CFA Candidates

Rank: 2

UID: 222281
帖子: 261
主题: 59
注册时间: 2011-7-2
最后登录: 2014-6-28

15^#

发表于 2013-4-22 06:57 | 只看该作者

optix: just think of it as you never adjust equity under any of the methods however for acquisition since you combined the TOTAL A + L of the target, you must add the non controlling interest to equity to make the equation balance – so it becomes higher than both equity and proportional consolidation.
this then makes things like ROE lower, etc.

TOP

Analti_Calte