Katie Limited has a 90% ownership interest in Max Limited. Max Limited has a 60% ownership interest in Josie Limited. As a result of these ownership interests, there is an indirect NCI in Josie Limited of:

Question

Quizplus · Accepted Answer

Katie Limited owns 90% of Max Limited, which in turn owns 60% of Josie Limited. Therefore, Katie Limited indirectly owns 0.9 x 0.6 = 0.54 or 54% of Josie Limited. The remaining 46% is owned by NCI. Since Max Limited owns this 46% interest proportionately, NCI's share in Josie Limited is (46% x 60%) = 27.6%. Therefore, the indirect NCI held by Katie Limited is (1 - 54%) x 27.6% = 6%.

Katie Limited Has a 90% Ownership Interest in Max Limited