The step 1 NCI entry to reflect the NCI share of equity at acquisition date:
A) changes every period as a result of changes in NCI.
B) never changes, and is the same in all subsequent consolidation worksheets.
C) changes every period as a result of changes in the subsidiary's pre-acquisition equity.
D) changes every period as a result of changes in the subsidiary's post-acquisition equity.

Question

Quizplus · Accepted Answer

The step 1 NCI entry reflects the NCI share of equity at acquisition date, which remains constant and does not change over subsequent consolidation worksheets. This reflects the fact that the NCI's share of equity was determined at the time of acquisition and does not change with subsequent changes in the subsidiary's equity.

The Step 1 NCI Entry to Reflect the NCI Share