NON CONTROLLING INTEREST USING PROPORTIONATE SHARE METHOD

Suppose Oak only acquired 80% of the ordinary share capital and all the preference shares of Acorn for 25,000. Revised balance sheets are shown below:

	Oak	Acorn
Property, plant and equipment	100,000	10,000
Investment at cost	25,000
Net current assets	33,000	20,000
	158,000	30,000
Ordinary 1 shares	100,000	20,000
Preference shares		5,000
Retained reserves	58,000	5,000
	158,000	30,000