In the calculation of NCI,share of profit consolidation adjusting entries that do not change group profit will:
A) be adjusted if they affect the subsidiary's reported profit.
B) be adjusted if they affect the parent entity's reported profit.
C) not be adjusted.
D) none of the above.

Question

Quizplus · Accepted Answer

Consolidation adjusting entries that do not change the group profit will not be adjusted in the calculation of NCI. This is because NCI represents the portion of the subsidiary's net profit that is not attributable to the parent company, and therefore adjusting entries that do not affect group profit are not relevant to the calculation of NCI.

In the Calculation of NCI,share of Profit Consolidation Adjusting Entries