RepoToronto

What I am actually asking is, How they did come up with that number 320?
I realize that amt is the total amt they paid to own part of it. But schweser says minority interest is supposed to calced (percentage of co owned *equity of co you want to invest in). If this is so the number should be 290. I am just trying to understand how they came up with the 320 number

justin88

You should note the following point regarding the treatment of non controlling (minority) interests on the balance sheet.
IFRS and U.S GAAP have converged on how non controlling interests are classified on the balance sheet. Both now require non controlling interests in consolidated subsidiaries to be presented in consolidated balance sheet as a separate component of stockholders equity.
Previously companies using IFRS reported non controlling interests as equity, whereas companies reporting under U.S GAAP reported non controlling interests either as liabilities or between liabilities and equity(mezzanine section).
Therefore, as a result of this adjustment Equity reported under the acquisition/comcolidation method will be higher as compared to the equity reported under equity method and proportionate consolidation method.
Schweser has written in Book 2, Page 30 that all three methods report the same equity.This is an incorrect statement.
Hope that explains :-)

tikfed

Please help in answering this Q