Fleming Ltd.acquired 75% of Donner Ltd.at April 30,20X1.Both companies have April 30^th year-ends.Which of the following should be made to the opening non-controlling interest (NCI)balance to arrive at the April 30,20X2 NCI balance on Fleming's statement of financial position? A)Add in the NCI's share of Donner's fiscal 20X2 net income and subtract the NCI's share of Donner's dividends declared. B)Subtract the NCI's share of Donner's fiscal 20X2 net income and add in the NCI's share of Donner's dividends declared. C)Add in both the NCI's share of Donner's fiscal 20X2 net income and dividends declared. D)Subtract both the NCI's share of Donner's fiscal 20X2 net income and dividends declared.

Question

Quizplus · Accepted Answer

To calculate the NCI balance on Fleming's statement of financial position, we need to adjust the opening NCI balance by adding the NCI's share of Donner's net income for fiscal year 20X2 and subtracting the NCI's share of Donner's dividends declared. This is because the NCI's ownership percentage in Donner remains constant at 25%, and therefore, the NCI's share of profits and dividends will affect the NCI balance on Fleming's statement of financial position. Therefore, option A is the correct answer.