Assume that there are only two shareholders in a company; the controlling shareholder holds 90% of the
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Question:
The balance shown as non-controlling interest is different from the amount he paid to purchase the 10% equity shares of the company nor the market value of the shares of the company as at the date of the financial statements.
The amount of profit attributable to non-controlling interest is not equal to 10% of the net profit of the company for the financial year. Suppose you are the Group Accountant of the company. Draft a short memorandum explaining the above to the non-controlling shareholder to help him to understand the amounts and balances related to non-controlling interest in the consolidated financial statements.
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