Mount Ltd owns 60% of the issued share capital of Tom Ltd and 70% of the issued share capital of Price Ltd.Tom Ltd owns 90% of the issued capital of Karatha Ltd and 60% of the issued share capital of Roeburn Ltd.
-What is the NCI's indirect interest in Roeburn Ltd?

Question

Quizplus · Accepted Answer

Mount Ltd indirectly controls Roeburn Ltd through its 60% ownership in Tom Ltd, which owns 60% of Roeburn Ltd. The NCI's indirect interest in Roeburn Ltd is calculated as 40% (the portion of Tom Ltd not owned by Mount Ltd) of 60% (the portion of Roeburn Ltd owned by Tom Ltd), which equals 24%.

Mount Ltd Owns 60% of the Issued Share Capital of Tom