Hi,
I have a question on treatment of NCI when the Parent Company buy back all the shares of the subsidiary.
Example:
As at 31.12.2018 Company P holds 98% shares in Company S. The balance 2% are held by Company N.
On 01.02.2019 Company P buy back 2% shares from Company N.
Financials for Company N
Share Capital is $1,000
Net Assets as at 31.12.2018 is $20,000
Profit for Jan 2019 is $3,000
What are the accounting entries if:
Scenario 1: Company P paid $460 for the share buy back
Scenario 2: Company P paid $1,000 for the share buy back
Scenario 3: Company P paid $300 for the share buy back
Thank you
Yuna
I have a question on treatment of NCI when the Parent Company buy back all the shares of the subsidiary.
Example:
As at 31.12.2018 Company P holds 98% shares in Company S. The balance 2% are held by Company N.
On 01.02.2019 Company P buy back 2% shares from Company N.
Financials for Company N
Share Capital is $1,000
Net Assets as at 31.12.2018 is $20,000
Profit for Jan 2019 is $3,000
What are the accounting entries if:
Scenario 1: Company P paid $460 for the share buy back
Scenario 2: Company P paid $1,000 for the share buy back
Scenario 3: Company P paid $300 for the share buy back
Thank you
Yuna