Dinh Co. acquired 60% of Ludo Ltd. five years ago. In the current year, Dinh purchased additional shares from the NCI to bring its holdings to 75%. How should the difference between the purchase consideration paid and the adjustment to the value of the NCI be treated?

Question

Quizplus · Accepted Answer

The difference between the purchase consideration paid and the adjustment to the value of the NCI when a parent company acquires additional shares in a subsidiary is taken directly to equity, all attributed to the shareholders of the parent. This is because the transaction is between the parent and the non-controlling interests, affecting the equity attributable to the parent's shareholders.

Dinh Co Acquired 60% of Ludo Ltd