benbenxiong

The way I understand it is like this,
Parent book value of equity = 800

Purchases 80% of company b by issuing new shares equalling 300.

Now, if there is no goodwill, ie fair value of company equals fair value of net assets, your minority interest is the same under both us gaap and ifrs. It's calculation would be 20% of the company bs fair value of net assets, which is in this case going to be 375 (300/.80).
You minority interest would be .2*375= 75.



So you parents equity will be 800+300+75= 1175