Calculate the nci share of equity as at june

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Reference no: EM132555189

Jackie Ltd acquired 90% of the shares of Chan Ltd for $1,070 on 1 July 2019. At this date the equity of Chan Ltd consists of share capital ($600) and retained earnings ($400). At this date all the identifiable assets and liabilities of Chan Ltd were recorded at their fair values except for land ($100 lower than its fair value). On 30 June 2021, Chan Ltd transferred $50 to general reserves from retained earnings existing at 1 July 2019. The land was sold during the fiscal year ended at 30 June 2021.

Required:

Question 1: Discuss how the following two items are treated in the NCI journal entries (i.e., Step 5 of the consolidation process), which are used to calculate the NCI share of equity as at 30 June 2021.

i. Transfer of $50 from retain earnings to general reserve.

ii. The sale of the BCVR land during the current year. No need to provide the NCI journal entries. You just need to discuss how these items need to be handled in the NCI journal entries.

Reference no: EM132555189

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